2009 (9) TMI 927 - HC - VAT and Sales Tax

Summary

Issues involved: Appeal against penalty orders and assessment orders, stay petitions pending consideration, claim for input tax credit in excess of output tax, imposition of penalty for false claim.

The petitioner had filed appeals against penalty orders and assessment orders related to the years 2005-06, 2006-07, and 2007-08, claiming input tax credits in excess of output tax paid due to a subsidized selling rate. The assessing authority imposed a penalty for false claim of input tax credit, despite the petitioner remitting the excess amount before revised assessment.

The petitioner argued that the claim was a genuine mistake without willful violation or malafides, as initially permitted by the authority based on a mistaken basis.

The petitioner received notices for realization of amounts covered under assessment orders and apprehended recovery steps for penalty amount. Seeking a stay on collection until disposal of appeals by the second respondent, the petitioner pressed for consideration of pending appeals and stay applications.

Considering the pending appeals and stay petitions before the statutory appellate authority, the court directed the authority to evaluate and decide on the appeals and stay applications, considering all relevant contentions. Citing a Supreme Court decision in a similar case, the court emphasized the need for a fair assessment and disposal of appeals within a specified timeframe.

The writ petition was disposed of with a directive for the second respondent to review and decide on the stay applications promptly, after providing an opportunity for the petitioner to present their case. Until the orders on the stay petitions are issued, any further steps for realization of amounts under assessment orders and penalty orders were ordered to be halted.