Full Text
ST.APPL. 7/2013
MAHANAGAR TELEPHONE NIGAM LTD Petitioner Tlirough: MrRavi Sikri with MsAyushya
Kumar, Advocates.
Through: MrA.K. Babbar, Sr. Standing Counsel.
HON'BLE MR. JUSTICE R.V.EASWAR
29.01.2013 These eight appeals pertain to the tax period 01.04.2007 to
31.03.2008. Four appeals are in connection with the tax and interest demanded and the balance four appeals are in connection with the penalties sought to be imposed for the same period. The total figure of
2013:DHC:8613-DB the tax and interest demanded comes to ?7,12,40,302/- and the total amount of penalty demanded comes to ?5,33,60,260/-. The order which is impugned before us has been passed in appeal Nos.400-
407/ATVAT/12-13 pertaining to the assessment year 2007-08 which are pending before the Tribunal. The impugned order has been passed under section 76 of the Delhi Value Added Tax Act, 2004 on the application for stay of the pre-deposit amount. The Tribunal after considering the arguments on both sides directed the appellant to make a pre-deposit of
10% of the amount demanded pursuant to the default assessments oftax and interest and also directed the appellant to deposit 5% of the amount ofpenalty imposed in each ofthe cases pertaining to the levy ofpenalty.
ORDER
2. The learned counsel for the appellant submitted that the appellant is a public sector undertaking which is under the control ofDepartment of Telecommunication, Ministry of Telecommunication, Government of India. It was also contended that the appellant has already paid service tax and that it is seriously contesting as to whether any sale took place. However, those are matters which would be looked into by the Tribunal while considering the merits of the appeals.
3. We fmd that on an earlier occasion this Court in the appellant's own case in Sales Tax Appeal No.77/2012 had entertained a similar issue at the pre-deposit stage and had directed that the amount ofpre-deposit be reduced from crores to ?2 crores primarily for the reason that the appellant was a fully owned Central Government Enterprise. Taking a similar view, we feel that the requirement of pre-deposit of 10% of the tax and interest and 5% of the penalty demanded would be an undue burden on the appellant at this stage and, therefore, a reasonable amount ofpre-deposit be required ofthe appellant. Looking at the figures which we have mentioned above, 10% ofthe tax and interest demanded would amount to approximately ?70,00,000/- and 5% of the penalty demanded would amount to approximately ?26,00,000/-. We feel that it would be appropriate ifthe appellant is to deposit ?20,00,000/- by way of predeposit in respect of appeals pertaining to the tax and interest demands and a sum of ?5,00,000/- towards appeals pertaining to the penalty demanded. The said deposits be made by the appellant within two weeks. In case, the said deposit of?25,00,000/- is made within the said two weeks the appeals shall be heard by the Tribunal and disposed of on merits. These appeals, including all pending applications, stand disposed of as above. Dasti under the signature of Court Master.
BADAR DURREZ AHMED, J JANUARY 29, 2013 hs IM R.V.EASWAR, J