RAVI GUPTA v. COMMISSIONER SALES TAX, DELHI AND ANR

Citation: [2009] 5 S.C.R. 110

Court: Supreme Court of India

Bench: ARIJIT PASAYAT, A.K. GANGULY

Case summary

RAVI GUPTA v. COMMISSIONER SALES TAX, DELHI AND ANR.pdf

Judgment text

[2009] 5 S. C. R. 110 _, ~ RAVI GUPTA v. COMMISSIONER SALES TAX, DELHI AND ANR. (Civil Appe! al No. 1965 of 2009) MARCH 27, 2009 -. [DR. ARIJIT PASAYAT AND ASOK KUMAR GANGULY, JJ. ] Delhi Sales Tax Act, 1975- s. 43 (5)- Nature and scope of - Demand of tax under the Act and Central Sales Tax Act on account of failure to produce declaration forms - Appeal before Appellate Tribunal - Dismissed as not entertainable as neither the documents were furnished nor pre-deposit made - Held: Order in terms ofs. 43(5) is essentially an order of stay - While granting stay, though discretion is available, the same has to be exercised judiciously - On facts, since t the assessee deposited the amount as directed by Supreme Court at admission stage, direction to Tribunal to hear the matter on merits - Central Sales Tax Act, 1956. Interlocutory Order-- Stay order- Grant/denial of- When - Discussed.

Demand of tax was made by respondent-Revenue on the ground that assessee did not furnish requisite declaration forms. Appellate authority affirmed the order. Assessee filed appeal before Appellate Tribunal, Value " Added Tax, Delhi. He also filed application uls 43(5) of Delhi Sales Tax Act, 11975 to dispense with pre-deposit which is condition precedent for entertaining the appeal. Tribunal directed pre-deposit of 3 crores. Despite the time given, when the as;sessee neither produced the documents nor did hu deposit the amount as directed, -~ ... the appeals were dismissed as not entertainable. Hence the present appeal. 't, Disposing of the appeal, the Court . , HELD: 1. The appellate authority has a discretion not to insist on payment as a condition precedent to entertain the appeal, for which the reasons have to be recorded in ·writing. The order in terms of Section 43(5) of Delhi Sales Tax Act, 1975 is essentially an order of stay.

Three things " are to be considered by the Tribunal, while dealing with the application for dispensing with the pre-deposit. They are: the prima facie case, balance of convenience and irreparable loss. [Para7] [116-C-D] - consequences flowing from the order requiring the assessee to deposit full or part of the demand. There can be no rule of universal application in such matters and the order has to be passed keeping in view the factual scenario involved. Merely because this Court has indicated the principles that does not give a license to the forum/authority to pass an order which cannot be sustained on the touchstone of fairness, legality and public interest. Where denial of interim relief may lead to public mischief, grave irreparable private injury or shake a citizens' faith in the impartiality of public administration, interim relief can be given. 11.

In the instant case the only plea which the appellant was pressing into service was that ifdeclaration forms are produced the ultimate demand would not exceed Rs. 15 lakhs. As is rightly contended by learned . counsel for the respondents, ample opportunity has been granted to the appellant to produce the declaration forms. That apparently has not been done. The appellant has produced certain records to submit that the declaration forms can be produced at the present juncture. While issuing notice on Special Leave Petition on 13. 6. 2006 it was directed that on payment of Rs. 1,00,00,000/- realization of the balance payment shall be stayed until further orders. It is accepted that the amount has been deposited. 12. Considering the facts of the case, we direct that the Tribunal shall hear the appeal on merits without insisting on any further deposit in terms of Section 43(5). It is made clear that we have expressed no opinion on the merits of the case.

It is for the appellant to satisfy the Tribunal the reason for which the declaration forms could not be produced earlier and if the Tribunal is satisfied with the genuineness of the stand it shall dispose of the appeals in accordance with law. 13. The appeal is disposed of with no order as to costs. K. K. T. Appeal disposed of '/