M/s. Hindustan Zinc Limited vs State of Jharkhand and Others

Heard learned counsel for the parties. The petitioner''s submission is that it has challenged the re-assessment orders passed by the Assessing Officer u/s 45 of the Bihar Finance Act. The appellate authority is not functioning due to transfer of the officer from the post of the appellate authority. It is also submitted that the petitioner is entitled for refund of more than Rs. 6.00 Crores from the Sales Tax Department of the State for which refund notices have also been issued by the State Sales Tax Department and that pertains to the period 2001-02, 2002-03 and 2003-04. Inspite of these dues of the petitioner in the revenue, the petitioner, has been served with the demand notices for total amount of about Rs. 1.80 Crores (in all three cases).

Learned counsel for the petitioner submits that even if the petitioner''s appeals are dismissed even then there will be excess amount of the petitioner lying with the Sales Tax Department. It is submitted that since the appellate authority is not functioning, therefore, the appeals against the proceeding are not decided nor any interim order can be passed. Therefore, the petitioner prayed for interim order by this Court so that till the petitioner''s appeals are taken up for hearing and decided, the petitioner may not be forced to pay the amount as demanded by the revenue of about Rs. 1.80 Crores (in all three cases).

Learned counsel for the State submitted that it is true that the petitioner is claiming refund of Rs. 6,04,94,310/-but, for this amount, review proceedings u/s 47 of the Bihar Finance Act are pending which could not be decided by the reviewing authority due to non-cooperation by the petitioner. It is also submitted that the petitioner preferred appeals before the appellate authority and in last one year could not get interim order from the appellate authority. Therefore, there is no reason to grant interim relief to the petitioner at this stage. It is also submitted that the appellate authority is likely to be posted within a period of one week time or ten days time.

After perusing the chart shown by the learned counsel for the State it appears that there are claims and counter claims and at present final orders are in favour of the petitioner for refund of Rs. 6,04,94,310/-. It may be true that the review proceedings are pending before the reviewing authority for the said amount but looking to the claims and counter claims and involvement of the difference in the amount between the claim and counter claim, we are of the considered opinion that the respondents shall not adopt any coercive measure for recovery of the amount from the petitioner till the petitioner''s stay petitions are decided by the appellate authority and it is ordered because of the reason that the appellate authority is likely to be posted within a period of one week or ten days time and also looking to the peculiar facts of the case.

In view of the above reason, all the three writ petitions are disposed of. The petitioner shall cooperate in deciding the review petitions and shall not seek unnecessary adjournment and the appellate authority is requested to consider and decide the appeals of the writ petitioner expeditiously and if it is not practically possible then, in that situation, may consider the relief for interim relief uninfluenced by our this order.