9911796707
|
Home
Issues:
Application for waiver of pre-deposit of penalty and stay of recovery proceedings. Analysis: The appellant filed an application seeking waiver of pre-deposit of penalty amounting to Rs. 5,00,000/- and stay of the recovery proceedings. The appellant's representative argued that the appellant, designated as Executive Director, did not actively participate in the day-to-day operations. It was emphasized that the Managing Director, who was directly responsible for the company's actions, should bear sole liability for any wrongdoings. The representative contended that the appellant's role was not discussed in the order imposing the penalty. Additionally, it was highlighted that the appellant's financial situation was dire, as evidenced by an ongoing insolvency petition before the Additional Judge, Small Causes Courts, City Small Causes Courts, Hyderabad, where the Department was also a party. The Revenue's representative defended the Department's decision to impose the penalty, citing the presence of substantial evidence supporting the penalty of Rs. 5,00,000/-. However, the representative expressed uncertainty regarding whether the main party had appealed against the impugned order. After carefully evaluating the arguments from both sides, particularly considering the pending insolvency petition involving the appellant, the judge found merit in granting the stay application. Consequently, the judge allowed the stay application, thereby halting the recovery proceedings and waiving the pre-deposit of the penalty amount.
|
