2018 (5) TMI 1328 - HC - VAT and Sales Tax

Validity of recovery proceedings - pending stay applications - Held that - the petitioner can be given some respite from the rigor of recovery at least until such time as his stay petition is considered by the Appellate Tribunal. The Kerala Value Added Tax Appellate Tribunal directed to take up consider and pass orders on Exts.P4 P4(a) P4(b) P4(c) and P4(d) stay petitions preferred by the petitioner within a period of one month from the date of receipt of a copy of this judgment. Until such time as the Appellate Tribunal passes an order on the stay petition and communicates the same to the petitioner all steps for recovery pursuant to Ext.P5 demand notice for recovery of amounts against the petitioner shall be kept in abeyance.

Summary

Issues: Impugning recovery action post assessment orders, pending appeals before Appellate Tribunal, stay petition consideration, recovery of assessed tax, orders on stay petitions.

The petitioner challenged the recovery action initiated by authorities post assessment orders, contending that their appeals and stay petitions were pending before the Appellate Tribunal. The petitioner sought a halt to recovery until the stay petition was decided. The Government Pleader argued against granting a stay due to the substantial amount involved. The Court, considering past orders in similar situations, decided to provide relief to the petitioner until the stay petition was adjudicated. The Court directed the Appellate Tribunal to expedite the consideration and decision on the pending stay petitions within one month. Until the Tribunal's decision and communication to the petitioner, all recovery steps based on the demand notice were ordered to be suspended. The petitioner was instructed to present a certified copy of the judgment and the writ petition to the Tribunal to initiate the one-month timeline for the stay petition's resolution.