2013 (5) TMI 260 - HC - VAT and Sales Tax

Conditional order of stay - appellant submits that actually no amount is due and amounts are due to it - Held that - Considering the orders passed by this Court in Ext.P3 wherein a Division Bench of this Court has allowed the appeal in part and granted conditional order of stay on remitting Rs.10 crores instead of 1/4th of the KGST and VAT due for the assessment year 2005-2006 & that by Ext.P3(a), operation of the said order was stayed by the Apex Court. The demand for tax is to the tune of Rs.478 crores only. Thus interest of justice will be sufficiently met if Ext.P7 impugned order of conditional stay further modified and directed to appellant to pay Rs.20 crores as against Rs.25 crores as ordered by the learned Single Judge and furnish security for the balance amount within a period of one month from today, proceedings will be kept in abeyance till the disposal of the Appeal.

Summary

Issues:
1. Assessment under the CST Act for the year 2005-2006.
2. Dispute over conditions imposed in the conditional order of stay.
3. Modification of the conditional order of stay by the learned Single Judge.
4. Appeal against the order directing payment of Rs.25 crores.
5. Appellant's claim of no amount due and reference to previous court orders.
6. Decision on the modification of the impugned order and the directed payment amount.

The judgment by the High Court of Kerala pertains to a writ petition filed by the appellant seeking various reliefs regarding an assessment under the CST Act for the year 2005-2006. The dispute primarily revolves around the conditions set in the conditional order of stay, specifically Ext.P7. The appellant managed to persuade the learned Single Judge to modify Ext.P7, which required the payment of Rs.25 crores within two weeks along with providing security. However, the appellant was dissatisfied with this judgment and appealed.

During the proceedings, the appellant argued that no amount was actually due and referred to previous court orders, particularly Ext.P3, where a Division Bench allowed the appeal in part and granted a conditional stay on remitting Rs.10 crores instead of 1/4th of the KGST and VAT due. The total tax demand was stated to be Rs.478 crores. After hearing both parties, the High Court decided to modify the impugned order further. The court directed the appellant to pay Rs.20 crores instead of Rs.25 crores as ordered by the Single Judge and furnish security for the remaining amount.

Consequently, the Writ Appeal was partially allowed, and it was mandated that if the appellant remits Rs.20 crores and provides security for the balance amount to the satisfaction of the assessing officer within one month from the judgment date, all proceedings would be suspended until the appeal's disposal. This judgment aimed to balance the interests of justice while addressing the appellant's concerns regarding the payment amount and security requirement.