Non availability of facility of deferment of payment of the Value Added Tax—Sick industrial unit—In the instant case, the petitioner challenge the order passed by Additional commissioner whereby the facility of deferment of payment of the Value Added Tax granted earlier not available as a result of which the petitioner which is a sick unit declared, as such under the Sick Industrial Companies Act, 1985 is faced with the demand to pay the taxes.

Held that—It appears that while passing the impugned order dated 09.05.2018 whereby the Government Order dated 10.02.2014 has virtually been declared to be inoperative, the authority concerned does not appear to have taken into account the effect of the repeal and saving clause contained in section 174 of U.P. Goods and Services Tax Act, specially sub section 2(c) of section 174 of the said Act. The impugned order dated 09.05.2018 only states that under section 71 of the then prevalent U.P. Value Added Tax Act, the powers were vested in the State Government to defer the liability of payment of Value Added Tax in case of the sick units declared as such under the Act - What is, thus, noticeable here is that the authority concerned while passing the said order dated 09.05.2018 has clearly ignored the provisions of section 174(2)(c) of U.P. Goods and Services Tax Act.

The impugned order dated 09.05.2018, as is contained in annexure-1 to the writ petition, is hereby quashed - Petition allowed.[K.R. FOODS LTD. THRU ITS DIRECTOR VERSUS U.O.I. THRU SECY. MIN. OF FINANCE (REVENUE DEPT.) AND 6 OTHERS] [ALLAHABAD HIGH COURT]