2019 (4) TMI 580 - HC - VAT and Sales Tax

Grant of stay - non-production of materials by petitioner to substantiate their contentions or not - invocation of supervisory jurisdiction - Held that - At the time when the impugned interim order was passed by the Tribunal, the documents were available before the said authority. Hence it is evident that there occurred a failure on the part of the Tribunal in adverting to those documents - a direction to the Tribunal to pass appropriate orders on the rectification application, after taking note of the documents produced before the Tribunal, would suffice to meet the ends of justice. Petition is hereby disposed of by directing the Kerala Value Added Tax Appellate Tribunal, Additional Bench, Kottayam to consider and dispose of Interim Application filed seeking rectification of the order passed by the Tribunal, within a period of three weeks from the date of receipt of a certified copy of this judgment - rectification application disposed off.

Summary

Issues:
Challenge to Ext.P7 interim order passed by the Kerala Value Added Tax Appellate Tribunal, Failure to consider documents by the Tribunal, Invocation of supervisory jurisdiction by the petitioner, Denial of principles of natural justice, Rectification of the order by the Tribunal.

Analysis:
The petitioner challenged the Ext.P7 interim order passed by the Kerala Value Added Tax Appellate Tribunal, seeking a stay on the collection of the balance tax pending the appeal process. The Tribunal had granted interim stay subject to the condition of the petitioner depositing 30% of the demand and furnishing security for the balance amount. The petitioner contended that the Tribunal failed to consider the documents produced in support of their contentions, leading to an incorrect observation by the Tribunal. The petitioner invoked the supervisory jurisdiction of the court under Article 227 of the Constitution of India, alleging a denial of natural justice due to the Tribunal's failure to appreciate the contentions raised based on the supporting documents.

The court emphasized that the appellate authority must consider the merits of the appeal on a prima facie basis and examine any documents produced in support of the contentions. It was noted that the petitioner had indeed submitted documents before the Tribunal, contrary to the observation in Ext.P7. The court agreed that there was a failure on the part of the Tribunal in not acknowledging the documents during the interim application hearing. The Government Pleader confirmed that the documents were available before the Tribunal when the interim order was passed. The court directed the Tribunal to consider and dispose of the petitioner's application seeking rectification of the order, ensuring that the documents are duly considered to uphold the principles of natural justice.

Therefore, the court disposed of the original petition by instructing the Kerala Value Added Tax Appellate Tribunal to address the rectification application promptly, within three weeks of receiving a certified copy of the judgment. Until the rectification application is resolved, no coercive steps for recovering the disputed balance demand shall be pursued, ensuring fairness and procedural correctness in the adjudication process.