2007 (11) TMI 692 - HC - VAT and Sales Tax

Summary

Issues involved: Petitioner's entitlement to exemption, pending appeals (Ext.P2 and Ext.P7), Revenue Recovery proceedings (Ext.P8).

Entitlement to exemption: The petitioner claims entitlement to exemption and states that Ext.P2 appeal on this issue is pending consideration of the first respondent. The appeal is directed to be considered as per Ext.P4 judgment in W.A.1411/2007. The petitioner submits that the appeal will be considered at the State Level Committee to be convened by the first respondent within two months.

Assessment and appeals: For the assessment in the year 2002-03, Ext.P3 assessment notice was issued, and assessment was completed as per Ext.P6, rejecting the petitioner's claim for total exemption based on Ext.P1 notification. Subsequently, the petitioner filed Ext.P7 appeal and stay petition, which are pending consideration of the third respondent. While orders are not passed in the stay petition, Revenue Recovery proceedings have been initiated by Ext.P8, leading to the filing of the writ petition.

Conditional stay of recovery action: The judgment notes that the fate of Ext.P7 appeal depends on the outcome of Ext.P2 appeal. Considering this, the court decides to grant a conditional stay of Ext.P8. It is directed that further proceedings pursuant to Ext.P8 shall be deferred if the petitioner remits a sum of Rs. 4,00,000/- (Four Lakhs) within one month from the date of the judgment.

Conclusion: The writ petition is disposed of with the directive for the conditional stay of recovery proceedings upon the petitioner's compliance with the specified payment within the given timeframe.