VST INDUSTRIES LIMITED versus THE STATE OF UTTAR PRADESH & ORS.

Citation: [2019] 6 S.C.R. 638 · Decided: 22-04-2019 · Supreme Court of India · Bench: ASHOK BHUSHAN · Disposal: Disposed off
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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 6 S.C.R.
VST INDUSTRIES LIMITED
v.
THE STATE OF UTTAR PRADESH & ORS.
(Civil Appeal No. 3256 of 2019)
APRIL 22, 2019
[ASHOK BHUSHAN AND K. M. JOSEPH, JJ.]
Uttar Pradesh Tax on Entry of Goods into Local Areas Act,
2007 – Writ petition filed by the appellant before the High Court –
Impugned interim order passed by the Division Bench inter alia
directing that subject to deposit of 50% of the interest by way of
recovery, no coercive measure be taken against the appellant – Plea
of appellant that after the impugned interim order was passed, about
33 percent of amount of interest has already been realised from the
appellant – Held: Writ petition filed by the appellant pending in the
High Court, need to be finally decided – No further recovery be
affected against the appellant towards the demand of interest on
arrears of Entry Tax and recovery, if any, of the interest from the
appellant shall be subject to the final outcome of the writ filed by
the appellant.
Disposing of the appeal, the Court
HELD: 1.1 In Order passed in Civil Appeal Nos.3257-3268 of
2019, Indian Oil Corporation Limited versus State of U.P. & Others,
issues pertaining to liability of interest under U.P. Act 2007 have
been decided. Writ petition of the appellant pending in the High
Court need to be finally decided. In result, this appeal is disposed
of providing that no further recovery be affected against the
appellant towards the demand of interest on arrears of Entry Tax
and recovery, if any, of the interest from the appellant shall be
subject to the final outcome of the Writ filed by the appellant.
[Paras 3, 4][639-G-H; 640-A-B]
Indian Oil Corporation Limited versus State of U.P. &
Others Decision of Supreme Court in Civil Appeal
Nos.3257-3268 of 2019 – referred to.
   [2019] 6 S.C.R. 638
638
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CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3256
of 2019.
From the Judgment and Order dated  11.07.2018 of the High Court
of Judicature at  Allahabad in Writ Tax No. 961 of 2018.
Ms. Aishwarya Bhati, ASG, Dr. Manish Singhvi, AAG, Guru
Krishan Kumar, Dhruv Agrawal, Dinesh Dwivedi, Sr. Advs., Ajay
Aggarwal, Ms. Mallika Joshi, Rajan Narain, Nishit Agrawal, Manik Sethi,
Bhakti Vardhan Singh, Yasharth Kant, Krishnam Mishra, Satyendra
Kumar, Shailja Nanda Mishra, Udit Jain, Abhishek Anand, Isaan Saran,
M. P. Devanath, Advs. for the appearing parties.
The Judgment of the Court was delivered by
ASHOK BHUSHAN, J.
1. This appeal has been filed against the Division Bench order of
the Allahabad High Court dated 11.07.2018 by which order the High
Court directed: -
“…Subject to deposit of 50% of the interest so demanded by
way of recovery dated 26.06.2018 within the next one week,
no coercive measure may be taken against the Petitioner till
18th July, 2018.
List this matter on 18th July, 2018 along with Writ-Tax No.757
of 2018.”
2. The order impugned under this appeal is only an interim order.
In above interim order, High Court directed the writ petition to be listed
along with Writ-Tax No. 757 of 2018. The Division Bench of the High
Court has decided the Writ-Tax No. 757 of 2018 vide its judgment dated
22.11.2018 against which judgment, Civil Appeal Nos.3257-3268 of 2019,
Indian Oil Corporation Limited vs. State of U.P. and others, have been
filed, which have been decided by us by order of the date.
3. Learned counsel for the appellant submits that after interim
order dated 11.07.2018 passed in the writ petition of the appellant, about
33 percent of amount of interest has already been realised from the
appellant. In our Order of the date passed in Civil Appeal Nos.3257-
3268 of 2019, Indian Oil Corporation Limited versus State of U.P. &
Others, we have decided issues pertaining to liability of interest under
U.P. Act 2007. Writ petition in which impugned interim order dated
11.07.2018 is still pending in the High Court. We are of the view that
writ petition of the appellant pending in the High Court need to be finally
decided.
VST INDUSTRIES LIMITED v. THE STATE OF UTTAR
PRADESH & ORS.
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SUPREME COURT REPORTS
[2019] 6 S.C.R.
4. In result, this appeal is disposed of providing that no further
recovery be affected against the appellant towards the demand of interest
on arrears of Entry Tax and recovery, if any, of the interest from the
appellant shall be subject to the final outcome of the
Writ-Tax No. 961 of 2018 filed by the appellant.
5. The appeal is disposed of accordingly.
Divya Pandey
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