1987 (4) TMI 449 - HC - VAT and Sales Tax

Summary

Issues:
1. Power of the High Court to grant a stay of tax collection pending a tax revision case under the Andhra Pradesh General Sales Tax Act.

Analysis:
The judgment discusses the power of the High Court to grant a stay of tax collection pending a tax revision case under the Andhra Pradesh General Sales Tax Act. The court examines the relevant provisions of the Act, including sections 19, 20, 21, and 22, which outline the appellate and revision mechanisms for challenging tax assessments. It notes that the Act does not confer the power to stay tax collection on the Appellate Tribunal, but only on the joint Commissioner. The court then delves into the specific provisions of sections 22(6) and 22(6-A), introduced by an amending Act in 1985, which govern the payment of tax and penalty pending a tax revision case. The court interprets these provisions to allow the High Court discretion in directing the payment of disputed tax, including the option to pay in instalments or give other directions regarding tax payment.

The judgment emphasizes that the High Court's power to grant a stay of tax collection pending a tax revision case is not absolute but subject to the court's discretion based on the specific circumstances of each case. The court clarifies that while the Act generally discourages staying tax collection pending revision, the High Court may still exercise its discretion to permit payment in instalments or stay collection of part of the disputed tax in exceptional cases. The court highlights that the High Court's power is not limited to fixing instalments but extends to giving appropriate directions regarding tax payment as deemed fit.

Furthermore, the judgment references past decisions, such as Polisetti Narayana Rao v. Commissioner of Income-tax, Hyderabad, to draw parallels between the power of the High Court in tax revision cases and other legal contexts. It distinguishes cases related to advisory jurisdiction from the present case, where a revision is provided to the High Court under section 22 of the Act. The court rejects arguments that attempt to limit the High Court's power to direct tax payment pending a revision, asserting that the court has the authority to determine the manner of tax payment based on the circumstances of each case.

In conclusion, the court affirms that the High Court possesses the power to direct the payment of disputed tax, either in instalments or in any other suitable manner, pending the disposal of a tax revision case. The judgment sets out the parameters of this power, emphasizing the court's discretion in making such orders based on the facts and merits of individual cases.