Tax appeals rendered infructuous after BIFR settlement left no live controversy for further adjudication

Tax appeals arising under sales tax, VAT, central sales tax and entry tax laws became infructuous after the company's dues were stated to have been settled in proceedings before the BIFR. The record showed that the State commercial tax department had been informed of the settlement position and was exempted from further hearing. In that circumstance, the SC found that no live controversy remained for adjudication and disposed of the appeals accordingly.

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Issues: Whether the tax appeals survived after the company's dues had been stated to be settled in the proceedings before the Board for Industrial and Financial Reconstruction, and the taxing authority was exempted from further hearing.

Analysis: The appeals challenged tax liability determinations under the sales tax, VAT, central sales tax, and entry tax laws. During the hearing, it was brought to the Court's notice that the company had been referred to the Board for Industrial and Financial Reconstruction and that the proceedings under the special sick-industrial framework had concluded. The record showed that the State's commercial tax department had been informed that the company's dues were admitted to have been settled and that it was exempted from attending further hearings. In that situation, the Court found that no live controversy remained for adjudication in the appeals.

Conclusion: The appeals were held to have become infructuous and were disposed of accordingly.

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