2010 (11) TMI 805 - HC - VAT and Sales Tax

Stay petitions - grievance of the petitioner is that without considering pendency of the appeals, demand notice has been issued as per Ext.P13 and steps for attachment of the Bank account was initiated pursuant to Ext.P1 notice Held that - Respondent is directed to consider and pass orders on Exts.P3 to P7 appeals at the earliest possible, after affording an opportunity of hearing to the petitioner, recovery steps now initiated pursuant to Exts.P1 and P13 notices shall be kept in abeyance, if there was any non-cooperation from the part of the petitioner, the second respondent will be at liberty to finalise the appeals without providing any further opportunity of hearing

Summary

Issues:
Assessment under Agricultural Income Tax Act, issuance of demand notice, attachment of bank account, appeals pending before appellate authority, change of counsel/representative, cooperation for disposal of appeals, direction to keep recovery steps in abeyance, timeline for disposal of appeals, consequences of non-cooperation.

Analysis:
The petitioner, a company assessed under the Agricultural Income Tax Act for the years 2004-05 to 2008-09, had filed appeals against the assessments along with stay petitions. The petitioner raised concerns that despite the appeals being ripe for hearing and posted on different dates, a demand notice was issued without considering the pending appeals, leading to initiation of steps for bank account attachment.

The Government Pleader informed that the appeals had been scheduled for hearings on various dates, but due to the petitioner changing their counsel/representative and seeking adjournments, the appeals were delayed. It was acknowledged that the appeals were ready for disposal if the petitioner cooperated with the process.

The petitioner's Senior Counsel assured that any confusion regarding representation had been resolved, and the petitioner was prepared to participate in the appeal hearings promptly. Seeking a direction to halt recovery steps until the appeal disposal, the petitioner pledged full cooperation for the timely resolution of the appeals.

After considering the circumstances, the court directed the appellate authority to expedite the disposal of the pending appeals. The second respondent was instructed to decide on the appeals within one month from the judgment's receipt, providing the petitioner with a hearing opportunity.

During the pendency of the appeal decisions, the recovery actions initiated based on the demand notices were ordered to be suspended. However, it was clarified that in case of petitioner's non-cooperation, the second respondent could finalize the appeals without further hearings.

The petitioner was mandated to present a copy of the judgment to the second respondent for compliance with the directives outlined in the judgment, ensuring timely resolution of the pending appeals and cooperation in the process to avoid adverse consequences.