TaxTMI 
TaxTMI 
1993 (9) TMI 104
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessment, ever since the assessment year 1985-86 onwards. For the four assessment years, namely, 1985-86 to 1988-89, the assets of the company had been valued for the purpose of wealth-tax on the respective dates of valuation, relatable to the assessment year as per the modalities prescribed. The company, it appears, took the stand that part of the property at Nandhanam should be regarded as stock-in-trade and, therefore, such portion of that property must be excluded from the computation for determining the net value of the assets exigible to wealth-tax. This sort of a contention had been negatived not only by the Deputy Commissioner of Income-tax, Special Range-I, Madras (first respondent) the assessing authority, but also by the Commissioner of Income-tax, Tamil Nadu-I, Madras-34 (second respondent) the appellate authority, taking into account the enormity and colossal nature of the rental income received from Nandhanam property a capitalised asset in the form of investment. The company, aggrieved by the said orders, filed appeals in T. A. Nos. 1013, 1057 and 1058/(Mds) of 1981 and 1024/(Mds) of 1992 before the Income-tax Appellate Tribunal, Bench 'D', Madras (third respon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of tyres, tubes and various other rubber products. By a notification dated April 6, 1984, issued by the Government of India, Ministry of Finance (Department of Revenue), in exercise of the powers conferred on it by rule 8(1) of the Central Excise Rules, 1944, tyres, falling under item No. 16 of the First Schedule to the Central Excises and Salt Act, 1944, were exempt from a certain percentage of excise duty to the extent that the manufacturers had not availed themselves of the exemption granted under certain other earlier notifications. The Department was of the view that the company was not entitled to the exemption as it has cleared the goods earlier without paying central excise duty, but on furnishing bank guarantees under various interim orders of courts. The company claimed the benefit of the exemption to the tune of Rs. 6.05 crores and filed a writ petition in the Calcutta High Court and sought an interim order restraining the central excise authorities from the levy and collection of excise duty. (b) The learned single judge took the view that a prima facie case had been made out in favour of the company and by an interim order allowed the benefit of the exemption to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....public interest. We are very sorry to remark that these considerations have not been borne in mind by the High Court and an interim order of this magnitude had been granted for the mere asking. The appeal is allowed with costs. " (g) By giving vent to such an expression in arriving at a conclusion in the case before them, the Supreme Court also expressed (at page 178): "We have come across cases where the collection of public revenue has been seriously jeopardised and budgets of Governments and local authorities affirmatively prejudiced to the point of precariousness consequent upon interim orders made by courts. In fact, instances have come to our knowledge where Governments have been forced to explore further sources for raising revenue, sources which they would rather well leave alone in the public interest, because of the stays granted by courts. We have come across cases where an entire service is left in a state of flutter and unrest because of interim orders passed by the courts, leaving the work they are supposed to do in a state of suspended animation. We have come across cases where buses and lorries are being run under orders of court though they were either denied....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has already been passed on to the consumer, any interim relief should at all be given to the manufacturer, dealer and the like." Worthwhile it is, at this juncture, to pen down the frowning of the Supreme Court, with agony and anguish, as to the grant of stay orders by entertaining writ petitions under article 226 of the Constitution of India, as found stated even at the threshold of the said judgment ( at page 174) : " It is indeed a great pity and, we wish we did not have to say it but we are afraid we will be signally failing in our duty if we do not do so some courts, of late, appear to have developed an unwarranted tendency to grant interim orders-interim orders with a great potential for public mischief for the mere asking. We feel greatly disturbed. We find it more distressing that such interim orders, often ex parte and non-speaking, are made even by the High Courts while entertaining writ petitions under article 226 of the Constitution, and in the Calcutta High Court, on oral application too," Now, coming to the facts of the case on hand, it is beyond the pale of controversy that the assessing as well as the appellate authorities, namely, respondents Nos. 1 and 2 ....