2015 (5) TMI 532 - HC - VAT and Sales Tax

Extension of interim stay - Finalization of proceedings - Held that - petitioner submits that the condition imposed as per Ext.P17 was not satisfied , earnestly under the belief that the proceedings will be finalised without any delay and that the petitioner was expecting favourable orders from the revisional authority/third respondent. It is also pointed out that the petitioner is ready and willing to satisfy the said condition, for which short time is sought for. - Government Pleader points out that if the petitioner proves his bonafides by effecting deposit within 'ten days', the matter can be considered and disposed of accordingly - it is fit and proper to grant one more chance to the petitioner to satisfy the condition imposed vide Ext.P17. The petitioner shall continue to enjoy the benefit of interim stay, if the petitioner complies with the condition, within 'ten' days - Decided conditionally in favour of assessee.

Summary

Issues:
1. Challenge to penalty imposition for assessment year 2010-11.
2. Appeal against assessment order and interim stay conditions.
3. Delay in finalizing Revision Petition.
4. Compliance with interim stay conditions.
5. Granting further opportunity for compliance.

Analysis:
1. The petitioner contested penalty imposition by the competent authority for the assessment year 2010-11, challenging the penalty amount and assessment basis. The petitioner approached the Deputy Commissioner (Appeals) and then the first respondent for revision. The High Court directed the Commissioner of Commercial Taxes to finalize the Revision Petition promptly within three months.

2. The assessment order by the Commercial Tax Officer was appealed by the petitioner, who failed to meet the interim stay condition of paying 35% of the balance tax. The petitioner argued that all relevant documents were submitted, expecting a favorable outcome from the revisional authority. The Court granted an additional chance to fulfill the condition within ten days to maintain the interim stay.

3. The petitioner emphasized the need for timely resolution of the Revision Petition to validate their position, considering the documents already provided. The Court acknowledged the petitioner's concern and instructed the Commissioner of Commercial Taxes to expedite the final decision on the Revision Petition, following the interim order issued earlier.

4. The Court noted the petitioner's failure to meet the condition set in the interim stay order but allowed a grace period of ten days for compliance. The Government Pleader suggested prompt deposit to demonstrate good faith, which could lead to a favorable resolution. The petitioner was given another opportunity to fulfill the condition for continued interim stay benefits.

5. Acknowledging the petitioner's readiness to meet the condition and the Government Pleader's suggestion, the Court granted a final chance for compliance within the specified timeframe. The Court's decision ensured that the assessment appeal would only proceed after the Revision Petition's conclusion, emphasizing procedural compliance and fair consideration of the petitioner's submissions.