2016 (4) TMI 1345 - HC - VAT and Sales Tax

Grant of stay on recovery - stay of collection of 50% of the balance tax of ₹ 1,81,86,984/- on condition that the petitioner deposits 25% thereof before 15.04.2016, and the remaining 25% before 30.04.2016 - Held that - As the petitioner s appeal is said to have been finally heard, and orders are said to have been reserved thereon, we consider it appropriate to modify the order passed by the Additional Commissioner, and direct the respondents not to take any coercive steps for recovery of the disputed tax till the disposal of the appeal pending before the Appellate Deputy Commissioner on condition that the petitioner deposits 25% of the disputed tax within two weeks from today. The petitioner shall be given credit for the tax, if any, already paid in this regard. As the petitioner s appeal is said to have been finally heard, and orders are said to have been reserved thereon, it is appropriate to modify the order passed by the Additional Commissioner, and direct the respondents not to take any coercive steps for recovery of the disputed tax till the disposal of the appeal pending before the Appellate Deputy Commissioner on condition that the petitioner deposits 25% of the disputed tax within two weeks from today - petition disposed off.

Summary

Issues Involved:
Assessment order challenge, Stay petition dismissal, Revision petition, Stay of tax collection, Compliance with deposit conditions, Comparison with Supreme Court order, Modification of Additional Commissioner's order, Coercive recovery steps, Credit for tax already paid.

Assessment Order Challenge:
The petitioner challenged the assessment order for the tax period 02.06.2014 to 30.04.2015. They appealed to the Appellate Deputy Commissioner (CT) and applied for a stay. The Appellate Deputy Commissioner dismissed the stay petition, leading the petitioner to file a revision petition with the Additional Commissioner (CT) Legal.

Stay of Tax Collection:
The Additional Commissioner granted a stay of 50% of the balance tax amounting to ?1,81,86,984, with a condition to deposit 25% before 15.04.2016 and the remaining 25% before 30.04.2016. The petitioner referenced a Supreme Court order in another case where a 25% tax deposit was required for stay.

Modification of Order:
Considering that the petitioner's appeal had been heard and orders reserved, the High Court modified the Additional Commissioner's order. They directed that no coercive steps for tax recovery should be taken until the appeal before the Appellate Deputy Commissioner was disposed of, provided the petitioner deposited 25% of the disputed tax within two weeks.

Comparison with Supreme Court Order:
The petitioner highlighted an interlocutory order by the Supreme Court in a different case, where a 25% tax deposit was required for stay. The Supreme Court order was related to a final order passed by the High Court in a previous case.

Coercive Recovery Steps:
The High Court directed the respondents not to take any coercive steps for recovery of the disputed tax until the appeal pending before the Appellate Deputy Commissioner was resolved. This decision was made in light of the petitioner's appeal being heard and orders reserved.

Credit for Tax Already Paid:
The High Court instructed that the petitioner should be given credit for any tax already paid in this matter. This ensured that the petitioner would not be disadvantaged by any previous tax payments made.

This detailed analysis covers the assessment order challenge, stay petition dismissal, modification of the Additional Commissioner's order, compliance with deposit conditions, comparison with the Supreme Court order, coercive recovery steps, and credit for tax already paid in the judgment delivered by the High Court.