2016 (1) TMI 1224 - HC - VAT and Sales Tax

Payment of tax without any further delay - the impugned proceedings is issued only on the reason that the stay granted by the appellate authority pending appeal challenging the assessment proceedings, has expired on 15.01.2016, without considering the fact that the appellate authority reserved the appeal for orders on 13.01.2016 and that the petitioner has also filed application seeking extension of stay on 11.01.2016 and the said application is still pending - Held that - the appellate authority will pass final orders in the appeal itself within a period of two weeks and in the meantime, the respondents will not give effect to the impugned notice - this writ petition is disposed of with a direction to the respondents not to proceed against the petitioner till the appeal is disposed of by the second respondent or till an order is passed in the petition seeking extension of stay, filed before him - decided in favor of petitioner.

Summary

Issues:
Challenge to impugned notice demanding tax payment; Validity of notice under Tamil Nadu Value Added Tax Act, 2006 and Tamil Nadu Revenue Recovery Act, 1864; Non-application of mind in issuing notice; Pending appeal and application for stay extension.

Analysis:
The petitioner filed a writ petition challenging a notice dated 18.01.2016 demanding tax payment under the threat of action under Section 42 of the Tamil Nadu Value Added Tax Act, 2006 and Tamil Nadu Revenue Recovery Act, 1864. The petitioner's counsel argued that the notice was issued due to the expiration of a stay granted by the appellate authority pending appeal, without considering that the appeal was reserved for orders on 13.01.2016 and an application for stay extension was filed on 11.01.2016, which was still pending. It was contended that the notice was a result of a lack of application of mind and was unsustainable.

During the hearing, the Additional Government Pleader for the respondents requested time to verify the facts and submissions. Upon further hearing, it was confirmed that the appellate authority had indeed reserved orders in the appeal on 13.01.2016, and the application for stay extension was pending. The government pleader assured that final orders in the appeal would be passed within two weeks, and until then, the respondents would not act on the impugned notice.

Consequently, the court disposed of the writ petition with a direction to the respondents not to take any action against the petitioner until the appeal was decided by the appellate authority or until a decision was made on the application for stay extension. No costs were awarded, and the connected miscellaneous petition was closed.