Full Judgment Text
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CASE NO.:
Appeal (civil) 763 of 2008
PETITIONER:
KANORIA INDUSTRIES LTD
RESPONDENT:
STATE OF KARNATAKA & ORS
DATE OF JUDGMENT: 25/01/2008
BENCH:
ALTAMAS KABIR & J.M. PANCHAL
JUDGMENT:
JUDGMENT
O R D E R
CIVIL APPEAL NO. 763 OF 2008
[Arising out of SLP(C) No.107 of 2007]
Leave granted.
This appeal is directed against the final judgement and order passed by the Karnatak
a High Court
on 14/08/2006 dismissing the Writ Appeal as also the Writ Petition filed by the appellant ch
allenging a
demand notice issued by the Government of Karnataka under Section 9 of the Karnataka Tax on
Entry of
Goods Act, 1979. The appellant took a stand before the High Court that it had been decla
red as a sick
company by the Board for Industrial and Financial Reconstruction on 02/06/2000 and that in v
iew of
Section 22 of the Sick Industries (Special Provisions) Act, 1985, the appellant was protecte
d from any
coercive action for recovery of the dues.
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On 19/02/2007 when the notice was issued on the special leave petition, an interim o
rder was
passed for stay of the recovery proceedings, in view of the submission made that a Rehabilit
ation Scheme,
as prepared by the Operating Agency, was under process.
Today when the matter is taken up, it has been shown to us that the proposed scheme
was finally
approved by the aforesaid Board on 20th September, 2007 and that the Government of Karnataka
had also
participated in the proceedings which led to the framing of the Scheme. At paragraph 8(4) of
the Scheme,
the conditions relating to the dues of the Government of Karnataka had been set out and und
er clauses (a),
(b) and (c) the matter relating to payment of sales tax dues, including Entry tax, has also
been indicated.
Learned counsel appearing for the State of Karnataka does not dispute the fact that
such a scheme
has been approved and that the Government of Karnataka has also agreed to the terms which ha
ve been
referred to hereinabove.
Having regard to the above, we dispose of this appeal by granting leave to the Gover
nment of
Karnataka to realise its dues in terms of
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the aforesaid scheme, and in case of default, to proceed in accordance with law to recover
the same.
There shall be no orders as to costs.