2016 (5) TMI 1207 - HC - VAT and Sales Tax

Seeking non-adoption of coercive measures for recovering the amount of commercial tax as assessed and also direction to take a decision on the application filed by the petitioner under Section 53(7) read with Section 53(8) of the Uttarakhand Vat Act, 2005 - Petitioner submitted that there is no administrative member in Commercial Tax Appellate Tribunal and, therefore, its appeals cannot be heard, in accordance with law. Held that - a direction is, issued to the State Government through Principal Secretary (Finance), Government of Uttarakhand, Dehradun as well as to the Commissioner (Commercial Tax) to initiate the process of appointment of an administrative member of Uttarakhand Commercial Tax Appellate Tribunal at Haldwani, at the earliest possible but not later than four weeks of receipt of certified copy of this order. Registry of the Court is directed to send a copy of this order to the Principal Secretary (Finance), Government of Uttarakhand as well as to the Commissioner (Commercial Tax) forthwith. Operation of the impugned recovery citations shall remain stayed. - Petition disposed of

Issues:
1) Writ petition seeking mandamus to prevent coercive measures for tax recovery.
2) Delay in decision on application under specific sections of the Uttarakhand Vat Act, 2005.
3) Lack of administrative member in the Commercial Tax Appellate Tribunal.
4) Direction for the appointment of an administrative member.
5) Stay on recovery citations for four weeks.

Analysis:
1) The writ petitions sought relief in the form of a mandamus to restrain the respondents from using coercive measures to recover commercial tax assessed for the year 2007-2008, pending before the Tribunal in Revision (Appeal) no. 21/2015. Additionally, a direction was requested for a decision on an application filed under Section 53(7) read with Section 53(8) of the Uttarakhand Vat Act, 2005.

2) The delay in deciding on the application under the specified sections of the Uttarakhand Vat Act, 2005 was highlighted by the petitioner's Senior Counsel, emphasizing the need for a timely resolution and adherence to the legal provisions.

3) The judgment pointed out a crucial issue regarding the absence of an administrative member in the Commercial Tax Appellate Tribunal, rendering it unable to hear appeals in accordance with the law. This deficiency was identified through the examination of the order sheet of the Tribunal.

4) Consequently, a direction was issued to the State Government and the Commissioner (Commercial Tax) to initiate the appointment process for an administrative member of the Uttarakhand Commercial Tax Appellate Tribunal within four weeks. The Registry of the Court was instructed to promptly convey a copy of this order to the relevant authorities.

5) To address the situation effectively, the judgment ordered a stay on the effect and operation of the impugned recovery citations for a period of four weeks from the date of the judgment. This stay was intended to provide temporary relief until the appointment of the necessary administrative member was completed.

In conclusion, the judgment disposed of the writ petitions with the specified directions, emphasizing the importance of compliance with legal requirements and the need for a functional administrative setup in the Commercial Tax Appellate Tribunal.

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