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2021 DIGILAW 1508 (BOM)

Global Ispaat Pvt. Ltd v. State Of Goa

2021-11-10

M.S.JAWALKAR

body2021
JUDGMENT M. S. Jawalkar, J. - Heard Mr. J.E. Coelho Pereira, learned Senior Counsel along with Mr. V. Braganza, learned Counsel for the petitioners and Mr. D. Pangam, learned Advocate General along with Ms. M. Correia, learned Additional Government Advocate for the respondent - State. 2. Issue notice to the respondents, returnable on 08.12.2021. Ms. M. Correia, learned Additional Government Advocate waives notice on behalf of the respondent State. 3. In this Writ Petition, the petitioner is challenging the deficiency notices at Annexure B Colly and the order of Department of Commercial Taxes, Government of Goa dated 03.11.2021, freezing the account of the petitioner at Annexure - C. 4. It is submitted by the learned Senior Counsel for the petitioners that the deficiency notices are issued on 01.06.2021, 01.07.2021 and on 28.09.2021. As per these notices, the petitioner was directed to deposit tax amount in accordance with order against which the appeal has been preferred. The notices refer to Section 28(3)(b). As per these provisions, there are powers to the appellate Authority to give direction if it thinks fit in regard to the payment of tax or other amount payable under clause (b) if the appellant furnishes sufficient security to its satisfaction in such form and in such manner as may be prescribed. Inspite of this provision these notices direct the petitioner to pay the total amount of tax and penalty disputed in the appeal on or before 11.11.2021 and respective dates mentioned in the above referred notices. It is also mentioned that failure to comply with the above deficiency notices, the matter will be decided ex-parte without any further reference to the petitioner. He relied on judgment of this Court in Writ Petition No.380 of 2019 in the case of M/s. West Coast Ingots Pvt. Ltd. V/s. State of Goa & Ors. And submitted that these notices are required to be quashed and set aside as those were passed without any opportunity of hearing. 5. Learned Advocate General makes submission that petitioner's applications for stay/interim relief will be finally concluded within a period of three weeks from today. 6. Heard learned Counsel for both the parties. Prima facie, these notices are not in accordance with law. 5. Learned Advocate General makes submission that petitioner's applications for stay/interim relief will be finally concluded within a period of three weeks from today. 6. Heard learned Counsel for both the parties. Prima facie, these notices are not in accordance with law. Section 28(3)(b) reads as under : Notwithstanding that an appeal has been preferred under sub-section (1), the tax or other amount shall be paid in accordance with the order against which the appeal has been preferred. Provided that the appellate authority may in its discretion, give such directions as it thinks fit in regard to the payment of tax or other amount payable under clause (b) if the appellant furnishes sufficient security to its satisfaction in such form and in such manner as may be prescribed. 7. Thus, there is discretion vested with the appellate authority to pass appropriate orders which it thinks fit in regard to the payment of tax, if appellant furnishes sufficient security to its satisfaction. In view thereof, without granting any opportunity of hearing, passing of order to deposit the total amount of tax, interest and penalty disputed in appeal and further informing that failure to comply with, matter will be decided ex-parte without any further reference to the petitioner is illegal and against principles of natural justice. 8. In such circumstances, these notices issued under Section 28(3)(b) at Annexure-B colly are required to be stayed. The assurance given by the learned Advocate General will take care of petitioner's grievance of grant of opportunity of hearing. Accordingly, I direct the respondent no.2 to decide the applications of the petitioner for interim relief in pending appeal nos.86 of 17-18 (TIN 30961102794E), ADC/APPEAL/TEG/90 of 2017-18, ADC/APPEAL/TEG/111 of 2018-19, ADC/APPEAL/TEG/39 of 2019-20, ADC/APPEAL/TEG/79 of 2019-20, after granting fair opportunity to the petitioner, within a period of three weeks from today. 9. So far as impugned order passed by the Assistant State Tax Officer, Margao, Goa (Appropriate Assessing Authority) dated 03.11.2021 issued to the Branch Manager, Punjab National Bank, Panaji Branch, Panaji-Goa, is concerned, it is provisional freezing of petitioner's account. At present, I will not go into the legality or illegality of that order. It is not the order directing the bank to divert the amount from the account of the petitioner to the Government Account. 10. At present, I will not go into the legality or illegality of that order. It is not the order directing the bank to divert the amount from the account of the petitioner to the Government Account. 10. In view of the order passed above, the petitioner's applications for interim relief in pending appeals will be decided within three weeks. Thereafter, the impugned order dated 03.11.2021 can be taken up for consideration. 11. Respondents to file their say on or before the next date and shall furnish advance copy to the other side. 12. Stand over to 08.12.2021. 13. Parties to act on the basis of authenticated copy of this order.