2016 (11) TMI 1182 - HC - VAT and Sales Tax

Attachment of bank property - interim stay restored to petitioner on application - Held that - Keeping in view the circumstances of the case and the fact that the appeal is pending before the appellate authority, we direct that on the petitioner filing a certified copy of this order alongwith a detailed representation before the appellate authority, ventilating the grievance as are raised in the writ petition, the appellate authority shall consider the same and pass an appropriate order on the same within a period of 7 days of its presentation - petition disposed off - decided in favor of petitioner.

Summary

Issues:
1. Stay on appeal and bank account attachment
2. Cancellation of registration without proper opportunity

Issue 1: Stay on appeal and bank account attachment
The petitioner's appeal was dismissed for want of prosecution but later restored. However, the respondents attached the petitioner's bank account despite the stay. The petitioner filed a writ petition challenging the non-release of the bank account and the cancellation of the registration certificate without proper opportunity. The respondents argued that these issues should be raised before the appellate authority. The petitioner's counsel highlighted the inaction of the appellate authority despite requests. The court directed the petitioner to file a detailed representation before the appellate authority, along with a certified copy of the order, to address the grievances raised in the writ petition. The appellate authority was instructed to consider the representation and pass an appropriate order within 7 days.

Issue 2: Cancellation of registration without proper opportunity
The Commercial Tax Department issued a show cause notice to the petitioner for non-deposit of tax due, threatening cancellation of registration. Before the petitioner could respond, the registration certificate was canceled. The petitioner contended that this action was taken without granting a proper opportunity. The court, considering the circumstances and the pending appeal, disposed of the petition by directing the petitioner to submit a detailed representation to the appellate authority for redressal of grievances within a specified timeframe.

This judgment addresses the issues of stay on appeal and bank account attachment, as well as the cancellation of registration without proper opportunity. It emphasizes the importance of the appellate authority's role in addressing grievances raised during the appeal process and ensures timely consideration and resolution of the petitioner's concerns.