In a major relief to Tata Steels, a division bench of the Jharkhand High Court has granted an interim stay of recovery of VAT demand subject to payment of 20% of demand.
The petitioner, Tata Steels approached the High Court challenging an order of the Commercial Taxes Tribunal, pertaining to the Assessment Year 2002-03 wherein the Tribunal upheld there assessment proceedings initiated upon audit objection under section 17(2) read with section 19(1) of Bihar Finance Act, 1981. The Tribunal upheld the appellate order dated 12.12.2014 passed by the Joint Commissioner of Commercial Taxes (Appeals), Jamshedpur Division, Jamshedpur (Respondent No. 3) and rejected the contention of the petitioner both on merits as also in respect of the plea of lack of proper notice in the statutory Form XIV as prescribed in terms of Rule 20 of Bihar Sales Tax Rules, 1983.
Earlier, the Auditor while comparing with the figure of Rs. 2,41,29,42,332.00 with the figures of sale of Misc. goods and stores added to the GTO of the petitioner’s Steel Division, Jamshedpur amounting to Rs. 187.43 crore, suggested that the petitioner’s turnover to the extent of Rs. 187.43 crore has been short levied to tax.
The petitioner contended thatdespite the breakup contained in the annual audit report of the petitioner clearly showing the amount of Rs. 187.43 crore as relating to other Divisions of Tata Steel, same were erroneously added to the gross turnover of the Steel Division at Jamshedpur and levied to tax amounting to Rs. 6,64,65,700/- at 4%.
Before the High Court, the State pleaded for and is allowed four weeks’ time to file counter affidavit. Two weeks’ time thereafter is allowed to the petitioner to file reply, if so advised.
Granting two-weeks time for the State, Justice Aparesh Kumar Singh and Justice Deepak Roshan observed that “In the meantime, subject to deposit of 20% of the tax of Rs. 6,64,65,700/- in the State Exchequer through challan within a period of 15 days from today, no coercive steps be taken against the petitioner. I.A. No. 9618/2022 stands disposed of.”
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