Interim Order and Penalty in Taxation Dispute Involving Century 21 Malls Pvt Ltd

The case involves Century 21 Malls Pvt Ltd (the appellant) challenging the High Court’s refusal to grant an interim order in a matter related to a penalty. The appellant had sought an interim order similar to those granted in other pending cases before the High Court. The High Court had provided detailed reasons for its departure from the previous approach, which became the focus of the appeal.

In the proceedings, the High Court stayed the penalty, acknowledging that the penalty could not have been imposed without first granting an opportunity for a hearing. The appellant sought to contest the penalty imposed, asserting that a hearing was necessary to assess the legitimacy of the demand. Given that the matter was still pending before the High Court, the Supreme Court refrained from making any observations regarding the merits of the case.

Justice Kurian Joseph, delivering the judgment, acknowledged the situation but directed that the appeal be disposed of by permitting the appellant to deposit 50% of the demand minus the penalty within ten weeks. For the remaining 50%, the appellant was required to provide an undertaking before the High Court, similar to undertakings provided by other writ petitioners in related cases.

The Supreme Court modified the High Court’s order to the extent of allowing the deposit and the undertaking. Furthermore, the Court requested the High Court to expedite the disposal of the writ petitions related to the matter. However, the Supreme Court clarified that the observations made in the impugned order were prima facie and would not influence the final outcome of the writ petitions.

In conclusion, the judgment provides temporary relief to the appellant, permitting partial payment of the demand, while the High Court is urged to expedite the proceedings. The Court made it clear that the interim order would not prejudice the final decision in the matter.

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Download Judgment: Century 21 Malls Pvt vs State of Madhya Prad Supreme Court of India Judgment Dated 14-12-2016.pdf