2020 (2) TMI 1601 - HC - VAT and Sales Tax

Rejection of petitioner's stay application - seeking stay of collection of the disputed tax pending the Appeal filed by the petitioner before the Telangana Value Added Tax Appellate Tribunal, Hyderabad - HELD THAT - Since the petitioner has already paid 25% of the disputed tax at the time of filing of the Appeal before the Tribunal and since the entire Appeal would be rendered infructuous if the respondents are allowed to collect the entire disputed tax pending the Appeal, the Writ Petition is disposed of directing stay of collection of the disputed tax pending disposal of the Appeal filed by the petitioner before the Telangana Value Added Tax Appellate Tribunal, Hyderabad.

Summary

Issues:
Challenge to rejection of stay application for disputed tax pending appeal before the Telangana Value Added Tax Appellate Tribunal.

Analysis:
The Writ Petition was filed under Article 226 of the Constitution of India challenging the rejection of the petitioner's stay application for the disputed tax pending appeal before the Telangana Value Added Tax Appellate Tribunal. The Counsel for the petitioner argued that the impugned order did not provide any reasons for rejecting the petitioner's contentions. The Special Counsel for Commercial Taxes representing the respondents also failed to explain the lack of reasons for rejecting the stay application. The Court noted that such instances where authorities fail to provide reasons for rejecting stay applications contribute to the workload of the Court, which is already understaffed.

The Court directed the Commissioner of Commercial Taxes, State of Telangana, to address this issue and advise the concerned Additional Commissioners not to pass orders without assigning reasons when considering applications for stay of collection of disputed tax pending appeals. Since the petitioner had already paid 25% of the disputed tax at the time of filing the appeal, and allowing the collection of the entire disputed tax pending appeal would render the appeal infructuous, the Court disposed of the Writ Petition by directing the stay of collection of the disputed tax pending the disposal of the appeal before the Tribunal. The judgment concluded by stating that no costs were awarded, pending miscellaneous applications would stand closed, and the registry would communicate the order to the Commissioner, Commercial Taxes Department, State of Telangana.