1996 (2) TMI 505

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....he prayer is to forbear the first respondent from proceeding to recover penal interest under section 24(3) of the Tamil Nadu General Sales Tax Act, 1959, pursuant to the proceedings dated November 23, 1995, for the assessment 1984-85 to 1986-87. The petitioner submits that it was declared as a sick industrial company under Central Act 1 of 1986 and for the purpose of rehabilitation of the industry....

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....as stated that such amount shall be paid within 30 days, and on failure to pay within 30 days, it will be recovered as if it were an arrear of land revenue or fine imposed by a Magistrate. The learned counsel for the petitioner submits that the proceedins so initiated for recovery by way of distraint proceedings as if it were an arrear of land revenue is contrary to the provisions of section 22....

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....rovisions of the scheme framed by the Board and highlights the fact that the Government of Tamil Nadu was agreeable for the rehabilitation scheme only on condition that the petitioner should pay the sales tax arrears in monthly instalments including interest under section 24(3) of the Act and as the petitioner had not complied with the terms of the scheme the benefit of the scheme is not available....

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....November 23, 1995. Though the petitioner is in arrears, yet that arrears can be recovered by resorting to distress proceedings only after compliance of the provisions of section 22. There is no provision in the scheme which denies the benefit of rehabilitation scheme to a party who is in arrears by not complying with the conditions laid down therein. The provisions of section 22 are beneficial pro....