M/S. Pataka Industries PVT LTD ,Ratanpur And Anr vs. Union Of INDIA And Anr

Held

The Court clarified its previous order dated April 5, 2022. It held that the 3.5% deposit of the demand, as previously directed, will not include penalty and interest. This means the petitioners are only required to deposit 3.5% of the principal tax demand, and not any amounts attributable to penalty or interest. The reasoning for this clarification is not explicitly detailed in the provided text, but it directly addresses the petitioners' contention and grants them the relief sought regarding the exclusion of penalty and interest from the deposit amount. The Court also directed the department to take necessary steps to implement this clarification. CAN/2/2022 in WPA 20484 of 2019 was disposed of.

Facts

This judgment concerns multiple writ petitions (WPA 20484 of 2019, WPA 11343 of 2021, WPA 11344 of 2021, WPA 11345 of 2021, WPA 11348 of 2021, WPA 20488 of 2019, WPA 20491 of 2019, and WPA 20494 of 2019) filed by M/s. Pataka Industries Pvt. Ltd. and another against the Union of India and other revenue authorities. The primary issue addressed in this specific order relates to a clarification of a previous order dated April 5, 2022. The petitioners sought clarification that a 3.5% deposit of the demand, previously ordered, would not include penalty and interest. The revenue authorities opposed this clarification. The present order also rectifies a typographical error in the previous order, correcting the year of one of the writ petitions.

Key Issues

1. Whether the 3.5% deposit of the demand, as directed by this Court's order dated April 5, 2022, should exclude penalty and interest. The petitioners argued that the deposit should only pertain to the principal tax demand, excluding any accrued penalty and interest. The revenue, represented by Mr. Maiti, opposed this clarification, implying that the 3.5% deposit was intended to cover the entire demand, including penalty and interest. The Court had to decide on the scope of the deposit requirement in light of the previous order.