The appeal filed by the Company was disposed of by the Tribunal by remanding the case to Deputy Excise and Taxation Commissioner for fresh decision after giving the Company a reasonable opportunity of being heard.
Subsequently, the suo motu revised assessment orders were passed enhancing the gross turnover of the Company by adding excise duty in the turnover returned by it and assessed by the Excise Taxation Officer, Gurgaon disallowing part of the amount of rebate allowed by the Assessing Authority.
The turnover of Omni product was taxed at the rate of 10 instead of 6 treating the same as Vans.
In order to determine the rival companytention it is necessary to have a resume of the facts leading to the filing of the present appeal.
On 16th March, 1992, the Deputy Excise Taxation Commissioner I , Gurgaon served a numberice on the Company proposing to suo motu revise the assessment orders of the Excise Taxation Officer, Gurgaon dated 20th November, 1990 on the grounds that the orders were illegal and improper for the reasons specified in the numberice served.
along with their spare parts.
The application was rejected on 29th June, 1992 and the Company given time to deposit the entire amount within a period of one month.
For the Assessment Year 1986 87, the Company was assessed to tax by the Excise Taxation Officer, Gurgaon vide his orders dated 20th November, 1990 under the Act and the Central Act.
Aggrieved by the aforesaid order, the Company filed an appeal before the Haryana Sales Tax Tribunal hereinafter referred to as the Tribunal , challenging the enhancement of turnover along with an application for stay of recovery of demand and entertainment of appeal without prior payment of tax and interest as required under Sub section 5 of Section 39.
Not satisfied, the Company again filed writ petition No.6932 of 1998 in the High Court which was allowed on 4.12.1998 vide the judgment impugned in this appeal.
Such application was rejected on 7.9.1994 giving the Company time to deposit the entire demand by 30th November, 1994.
Feeling aggrieved, the Company again filed an appeal before the Tribunal along with application for stay of recovery of demand and entertainment of appeal without prior demand of tax and interest.
Feeling aggrieved, the Company filed writ petition No.10088 of 1992 in the High Court of Punjab and Haryana at Chandigarh which was disposed of on 7.8.1992 directing the Company to furnish bank guarantee for the additional demand for entertainment of appeal, instead of depositing the whole amount in terms of Sub section 5 of Section 39 of the Act.
The respondent, M s.Maruti Udyog Limited a public limited companypany hereinafter referred to as the Company , having its factory at Gurgaon in the State of Haryana is engaged in the business of manufacture and sale of various types of cars, namely, Maruti 800, Omni and Esteem, etc.
LITTTTTTTJ What is the ambit and scope of the words unable to pay the whole of the amount of tax assessed used in proviso to Sub section 5 of Section 39 of the Haryana General Sales Tax Act, 1973, is the question of law requiring our interpretation in this appeal by special leave.
SETHI,J. Leave granted.
The Company is a registered dealer under the Haryana General Sales Tax Act, 1973 hereinafter referred to as the Act and the Central Sales Tax Act, 1956 hereinafter referred to as the Central Act with the Excise Taxation Officer, Gurgaon.
