TaxTMI 
TaxTMI 
TaxTMI 
2007 (10) TMI 581
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.... and sanitary ware, registered under the erstwhile Tamil Nadu General Sales Tax Act, 1959 and presently under the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as "the TNVAT Act"). In the year 1991, petitioner-company's net worth got completely eroded by the accumulated losses and therefore, the petitioner filed a reference under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as, "the SICA") and the proceedings are still pending. While so, the company was served with a notice dated January 22, 2007 requiring them to furnish additional security worth Rs. 1.53 crores on the ground that the petitioners have defaulted in payment of taxes. The proposals were confirmed by th....
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....er submitted that the second respondent, having acknowledged the petition for adjournment and assured that the matter would be adjourned, ought to have given an opportunity of personal hearing as provided under section 54 of the TNVAT Act, and therefore, the impugned order is arbitrary and in violation of principles of natural justice. He further submitted that the second respondent ought to have considered that the proceedings are pending before BIFR and there cannot be any coercive proceedings in view of the embargo contained in section 22 of the SICA Act. He further submitted that the impugned proceedings requiring additional security with a threat of cancellation of registration certificate, when the petitioners are facing severe financ....
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....l security reads that as per section 40(1) of the TNVAT Act, no person, who is not a registered dealer, shall collect any amount by way of tax under this Act. The order further reads that the petitioner-company was collecting taxes from their customers through sale invoices, but they were not remitting the same to the Government and they were found to be a regular defaulter in payment of tax. For proper realisation of tax payable under the TNVAT Act, the petitioner-company was requested to furnish additional security worth about Rs. 1.53 crores payable for the year 2005-06. Accordingly, a notice was issued to the petitioner inviting them to file their objections within 15 days from the receipt of notice and they were also requested to appe....
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....er matter. The revisional authority, on perusal of the records found that the petitioner was a regular defaulter and that they have to pay a huge arrears of tax of Rs. 3.53 crores and passed the impugned order. Granting adjournments on fax message is certainly not followed by courts or quasijudicial authorities. If the learned counsel for the petitioner was not in a position to attend the hearing, at least the petitioner could have made arrangements to appear before the revisional authority through their representative and sought adjournment. Therefore, it is apparent on the face of record that the petitioner had failed to appear before both the respondents, in spite of opportunities granted to them. Therefore, the contention of the learned....