2013 (4) TMI 353 - HC - VAT and Sales Tax

Assessment under the KVAT Act - Granting stay on condition that the petitioner remits 50% of the amount under orders under KVAT Act and furnishing security for the balance - Has defaulted in the payment of installments due to which recovery proceedings initiated - Held that - Subject to the petitioner paying the balance amount due under orders passed by the 1st respondent and furnishing security as ordered therein, within two weeks from today, further proceedings will stand stayed pending disposal of appeals by the 1st respondent. Petitioner will produce a copy of this judgment along with a copy of the writ petition before the 1st respondent for compliance - Writ petition is disposed of as above.

Summary

Issues:
1. Challenge to assessment orders under the KVAT Act for the years 2009-10 and 2010-11.
2. Stay petitions and orders passed in response.
3. Default in complying with the stay orders.
4. Revenue recovery proceedings initiated due to default.
5. Writ petition seeking disposal of appeals and abeyance of recovery proceedings.

Analysis:
1. The petitioner challenged the assessment orders (Exts.P1 and P2) under the Kerala Value Added Tax (KVAT) Act for the years 2009-10 and 2010-11. Subsequently, appeals (Exts.P3 and P4) were filed along with stay petitions (Exts.P5 and P6) to challenge the orders.

2. The stay petitions (Exts.P5 and P6) were heard, resulting in the issuance of orders (Exts.P7 and P8) by the 1st respondent. These orders granted a stay on the condition that the petitioner remits 50% of the amount under Exts.P1 and P2 and furnishes security for the balance. However, instead of complying with these orders, the petitioner obtained an order (Ext.P9) from the Government allowing payment of the due amount in instalments.

3. The petitioner defaulted on some of the instalments, leading to the initiation of revenue recovery proceedings (Exts.P14 and P15). The court noted that the petitioner was a defaulter not only of the stay orders (Exts.P7 and P8) but also of the Government order (Ext.P9).

4. The court observed that if the petitioner pays the balance amount due under the stay orders (Exts.P7 and P8) within a specified time frame, the recovery proceedings could be stayed pending the disposal of the appeals (Exts.P3 and P4). The court directed the petitioner to settle the balance amount and furnish security within two weeks to halt further recovery proceedings.

5. In conclusion, the court disposed of the writ petition by instructing the petitioner to present a copy of the judgment and the writ petition to the 1st respondent for compliance. The court's decision aimed to address the default in compliance with the orders and provide an opportunity for the petitioner to resolve the outstanding issues related to the assessment orders and recovery proceedings effectively.