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Madhya Pradesh High Court

Laxman Bhai Daya Bai vs Managiing Director Madhya Pradesh ... on 9 January, 2018

            THE HIGH COURT OF MADHYA PRADESH
                       WP-6997-2014
   (LAXMAN BHAI DAYA BAI Vs MANAGIING DIRECTOR MADHYA PRADESH STATE MINOR FOREST
                   PRODUCE (T AND D) COOPERATIVE FEDERATION LTD.)


  10
  Jabalpur, Dated : 09-01-2018
       Shri Sanjay Mishra, learned counsel for the petitioners.
        Shri Deepak Awasthi, learned Deputy Advocate General for the
  respondent/State.

sh Having heard the learned counsel for the parties at length, it is e stated by the learned counsel appearing for the parties that the issue as ad to the liability of the respondent/Federation to pay tax on the auction Pr sale of Tendu Patta by treating it to be an inter-state sale or intra-state sale is pending adjudication before the M.P. Commercial Tax Appellate a Board wherein the Board has granted an interim order in favour of the hy respondent/Federation on 1.1.2014 preventing the Commercial Tax ad Department from recovering the tax liability from the respondent.

M The learned counsel for the parties agree and do not dispute the fact that as per the agreement between them, in case the of respondent/Federation is ultimately saddled with the liability to pay tax rt at the enhanced rate by treating the same to be an intra-state sale, the ou petitioners/dealers would reimburse the same including the interest and in case the Appellate Board ultimately holds the sales to be inter-state C sales and no liability is fasten upon respondent/Federation no h consequent recovery would be made from the petitioners. ig In view of the aforesaid statements on agreement made by the H parties and the fact that the matter is pending adjudication before the Appellate Board which has granted an interim order in favour of the respondent/Federation and as there is an interim order in favour of the petitioners operating since the date of the filing of the petition, the present petitions are disposed of with a direction to the effect that the respondent/Federation shall not make any steps towards encashment of the bank guarantee furnished by the petitioners till the dispute is finally decided by the Appellate Board and that, subject to the adjudication of the same, the petitioners if so required would reimburse the respondent/Federation of the tax liability and interest, if any, imposed upon them. The petitioners undertake to the fact that the petitioners shall keep the same alive.

As the appeal is pending before the Appellate Board since 2014, the Appellate Board is directed to consider and decide the appeal expeditiously in accordance with law preferably as far as possible within a period of six months.

With the aforesaid direction/observation the petition filed by the petitioners, stands disposed of.

Certified copy as per rules.





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      (RAVI SHANKAR JHA)                             (NANDITA DUBEY)




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Date: 2018.01.10 16:29:16 +05'30' M of rt ou C h ig H