1994 (9) TMI 328 - HC - VAT and Sales Tax

Summary

Issues:
- Appeal against assessment order
- Coercive methods for tax recovery
- Pending appeal before Sales Tax Tribunal
- Application for stay of recovery
- Duty of Sales Tax Tribunal

Analysis:
The petitioner, a corporation, filed an appeal before the Deputy Excise and Taxation Commissioner against an assessment order, which was dismissed. Subsequently, the petitioner appealed to the Sales Tax Tribunal under the Punjab General Sales Tax Act, accompanied by an application for hearing the appeal without pre-deposit of tax and for stay of recovery. The Tribunal was yet to hear the appeal and the application, but the departmental authorities issued a notice for tax deposit, threatening proceedings under the Land Revenue Act if not complied with.

The petitioner argued that coercive methods for tax recovery were unjustified when the Tribunal had not heard the appeal or the stay application. The High Court noted similar cases and criticized the department's approach, emphasizing the right of the party to appeal and seek interim relief. The court directed the Sales Tax Tribunal to expedite the petitioner's appeal and consider the application for stay. Pending the Tribunal's decision, the department was restrained from recovery or initiating Land Revenue Act proceedings.

The High Court clarified that the Sales Tax Tribunal should independently assess the stay request, unaffected by the court's order. The writ petition was disposed of accordingly, with the specified directions to the authorities and the Tribunal.