2018 (9) TMI 1642

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....ak Seth, learned counsel representing the respondent nos.3 & 4 and learned Standing Counsel representing the respondent nos.5, 6 and 7. Under challenge in this petition is an order dated 09.05.2018 passed by the Additional Commissioner (Law), Commercial Tax, Headquarters, Lucknow, whereby the facility of deferment of payment of the Value Added Tax granted earlier by the State Government vide its order dated 10.02.2014 has been declared to be not available, as a result of which the petitioner which is a sick unit declared, as such under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'the Act') is faced with the demand to pay the taxes. The petitioner is a producer of Vanaspati Ghee i.e.....

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....ated 10.02.2014 provides for the said deferment and further clarifies that the dues of Value Added Tax shall be payable starting from the 6th years from the date of sanction of the modified Rehabilitation Scheme. Accordingly, in terms of the said Government Order dated 10.02.2014 the benefit of the said deferment was enjoyed by the petitioner-unit. In the meantime, U.P. Value Added Tax was repealed on 01.07.2017 on enforcement of U.P. Goods and Services Tax Act. Section 174 of U.P. Goods and Services Tax Act provides for repeal and saving clause which is quoted hereunder: "174.Repeal and Saving 1. Save as otherwise provided in this Act, on and from the date of commencement�of this Act, the Central Excise Act, ....

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....punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty,....

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....ent Order dated 10.02.2014 has virtually been declared to be inoperative, the authority concerned does not appear to have taken into account the effect of the repeal and saving clause contained in section 174 of U.P. Goods and Services Tax Act, specially sub section 2(c) of section 174 of the said Act. The impugned order dated 09.05.2018 only states that under section 71 of the then prevalent U.P. Value Added Tax Act, the powers were vested in the State Government to defer the liability of payment of Value Added Tax in case of the sick units declared as such under the Act. It further states that on repeal of U.P. Value Added Tax Act, w.e.f. 01.07.2017, U.P. Goods and Services Tax Act has come into force which does not contain any provision ....