2012 (3) TMI 375 - HC - VAT and Sales Tax

Court permits challenge to tax demand stay due to errors in return, orders payment and bond

The court allowed the writ petition challenging the stay order on tax demand due to clerical errors in the Central sales tax return. The petitioner was ... - Issues involved: Challenge to stay order on tax demand due to clerical errors in Central sales tax return.Summary:The petitioner challenged a stay order on tax demand arising from clerical errors in the Central sales tax return. The petitioner contended that the errors led to the demand of tax and had not been raised before the assessing authority during assessment. The impugned order directed the petitioner to make a payment of Rs. 98,72,210, 25% of the disputed tax for the year 2008-09, and provide security/bank guarantee of Rs. 2,96,16,628. The assessment order noted clerical mistakes in the return, specifically regarding goods stock transferred outside the State. The petitioner had filed an appeal against the assessment order and a stay petition u/s 31(5) of the Tamil Nadu General Sales Tax Act, 1959. The petitioner had paid 25% of the disputed tax at the time of filing the appeal and requested to pay Rs. 50 lakhs as part of the balance amount. The court ordered the petitioner to pay Rs. 50 lakhs and furnish a personal bond for the balance amount within four weeks. Upon compliance, the second respondent was directed to hear the appeal and pass appropriate orders expeditiously. The writ petition was allowed with no costs.