Global Poly Bags Industries (P) Ltd. Vs State Tax Officer-1 (Madras High Court)
Summary: The writ appeal challenged the order dated 05.03.2021 passed by the learned Single Judge in W.P.(MD) No.4566 of 2021. At the hearing, the writ appellant sought liberty to pursue a statutory appeal before the competent appellate authority on all available grounds, including the grounds raised in the writ appeal. The appellant also requested that the statutory appeal be entertained without insisting upon limitation and without the appellate authority being influenced by the observations of the learned Single Judge on the merits. The appellant undertook to deposit the entire tax liability together with 10% of the interest and penalty and submitted that it had recently come out of the NCLT resolution proceedings, warranting consideration as a special case.
The Division Bench considered these special circumstances and the undertaking given by the appellant. The writ appeal was disposed of by permitting the appellant to withdraw the writ appeal with liberty to file a statutory appeal before the competent appellate authority, canvassing all grounds available to it, including those raised in the writ appeal. The Court directed the appellant to deposit the entire tax liability within four weeks from receipt of the order and additionally deposit 10% of the interest and penalty. Upon such deposit, the appellant was required to file the statutory appeal within a further period of two weeks. The period during which the appellant prosecuted proceedings before the High Court was directed to be excluded while computing limitation.
If the statutory appeal was filed within the prescribed period, the appellate authority was directed to entertain and decide it on merits and in accordance with law, without being influenced by observations made by the learned Single Judge in the impugned order. The Court made no order as to costs and consequently closed the connected miscellaneous petition.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Appeal has been filed challenging the order passed by the learned Single Judge of this Court in W.P.(MD)No.4566 of 2021, dated 05.03.2021.
2. Today, when the matter is taken up, the learned counsel for the writ appellant prays for the liberty of this Court to permit him to file an appeal before the statutory appellate authority and canvas all the grounds that are available to him and raised in this writ appeal. Further, he would request this Court to direct the appellate authority to entertain the appeal without insisting upon the limitation and without being influenced by any of the observations made by the learned Single Judge on the merits of the matter. The learned counsel appearing for the writ appellant would also submit that the writ appellant is willing to deposit the entire tax liability along with 10% of the interest and penalty. It is further submitted that the writ appellant has recently come out of the NCLT resolution proceedings and considering the peculiar facts and circumstances of the case, it may be treated as a special case and some leverage may be shown against compelling deposit of the entire interest and penalty as well.
3. Considering the special facts and circumstances of the case, particularly the fact that the writ appellant has recently come out of the NCLT resolution proceedings and also considering the undertaking given by the writ appellant to deposit the entire tax liability and 10% of the interest and penalty, this writ appeal is disposed of on the following terms:
(i) The writ appellant is permitted to withdraw the present writ appeal with liberty to file a statutory appeal before the competent appellate authority, canvassing all the grounds available to him, including the grounds raised in the present writ appeal.
(ii) The writ appellant shall deposit the entire tax liability within a period of four weeks from the date of receipt of a copy of this order and shall also deposit 10% of the interest and penalty.
(iii) Upon such deposit, the writ appellant shall file the statutory appeal within a further period of two weeks.
(iv) The period during which the writ appellant was prosecuting the proceedings before this Court shall be excluded for the purpose of computing the period of limitation.
(v) The statutory appeal, if filed within the aforesaid period, shall be entertained by the appellate authority and decided on merits and in accordance with law, without being influenced by any of the observations made by the learned Single Judge in the order impugned in the writ appeal.
There shall be no order as to costs. Consequently, the connected miscellaneous petition is closed.
