1988 (8) TMI 408 - HC - VAT and Sales Tax

Summary

Issues:
1. Jurisdiction of the appellate authority to stay auction proceedings under the A.P. General Sales Tax Act, 1957.

The judgment delivered by the Andhra Pradesh High Court involved a writ petition challenging an order passed by the Appellate Deputy Commissioner dismissing an application for stay of auction proceedings under the A.P. General Sales Tax Act, 1957. The Commercial Tax Officer had ordered the confiscation of goods due to tax evasion, leading to the auction of the goods. The petitioner appealed against the confiscation order and sought a stay on the auction. The appellate authority refused to stay the auction, citing a lack of power under the Act. The High Court analyzed the provisions of the Act, specifically section 19, which provides an unlimited right of appeal to the appellate authority. Referring to a Supreme Court case, the High Court held that the appellate authority has the power to grant relief of stay of auction as an incidental power to make its broader powers under section 19 effective. Therefore, the High Court set aside the order of the appellate authority and directed it to consider the stay application afresh, allowing the auction proceedings to remain stayed until the new consideration. The writ petition was allowed with no order as to costs.

In conclusion, the judgment clarified that the appellate authority, under the A.P. General Sales Tax Act, 1957, has the power to grant relief of stay of auction proceedings during the pendency of an appeal against an order of confiscation. The High Court emphasized that the unlimited right of appeal provided under section 19 carries with it incidental powers to ensure the effective exercise of such rights. The decision was based on the interpretation of statutory powers and duties necessary to uphold the principles of natural justice and fairness in the adjudication process.