Madras HC Permits Statutory Appeal Subject to Tax and Interest-Penalty Deposit

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.