1994 (2) TMI 296

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.... return for the assessment year 1990-91 by order dated March 31, 1993, the Assessing Authority made an additional demand to the tune of Rs. 95,87,987. This was on account of the fact that sale amounting to Rs. 11,98,49,821.68 was claimed as intra-State sale by the petitioner, but according to the Assessing Authority the said sales were inter-State sales and the petitioner was liable to pay Central sales tax thereon. Aggrieved by the order, the petitioner filed an appeal before the Deputy Excise and Taxation Commissioner (Appeals) along with a prayer for entertainment of the appeal without prior deposit of the amount of tax held payable by the Assessing Authority. The said prayer was declined by the Deputy Excise and Taxation Commissioner an....

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....roached the Sales Tax Tribunal and the Sales Tax Tribunal passed a similar order as in the case of C.W.P. No. 2215 of 1994 referred to above, calling upon the petitioner to deposit the tax as found by the Assessing Authority by February 18, 1994, failing which the appeal filed before the Sales Tax Tribunal would stand dismissed. 3.. A caveat application under section 148-A read with section 151 of the Code of Civil Procedure having been filed on behalf of the Revenue, notice was given to the Advocate-General, Punjab, and Mr. K.S. Sidhu, Additional AdvocateGeneral, Punjab, appeared for the department and was heard. 4.. Mr. Jagan Nath Kaushal, Senior Advocate, learned counsel for the petitioner, contended that the petitioner had a very ....

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....t the petitioner being a Government of India undertaking ex facie indicated that it was not unable to pay the tax found to be due by the Assessing Authority.   6.. On a consideration of the matter, we are of the view that assuming that the amount raised by way of additional demand because of the order of the Assessing Authority may not be readily available with the Jalandhar branch of the petitioner-company, it should be perfectly possible for it to make necessary arrangement in consultation with the head office. A clear distinction must be kept in mind between difficulty in making arrangement from the financial capability of paying the amount. In this view of the matter, we find justification in the grievance of Mr. Kaushal that re....