2020 (6) TMI 388 - HC - VAT and Sales Tax

Stay of collection of the disputed tax - Section 31(3)(c) of the A.P. VAT Act, 2005 - It is contended that pending disposal of the appeal by the Tribunal, the respondents are insisting the petitioner on paying the balance disputed tax dues and that is why the petitioner has approached this Court by filing the present Writ Petition - HELD THAT - Since it is not disputed by the learned Special Counsel for Commercial Tax that petitioner had already deposited 2/3rds of the disputed tax, and since admittedly appeal filed by petitioner before the Telangana VAT Tribunal is still pending and if the balance tax is also permitted to be receoved, the very appeal would become infructuous, we deem it appropriate to dispose of this Writ Petition by directing stay of recovery of balance of the disputed tax pending disposal of T.A.No.98 of 2019 by the Telangana VAT Appellate Tribunal, Hyderabad. Petition disposed off.

Summary

Issues:
1. Assessment of liability to pay VAT for the tax period 2011-12 to 2013-14.
2. Rejection of stay application by the Appellate Deputy Commissioner.
3. Dismissal of main appeal by the Appellate Deputy Commissioner.
4. Pending appeal before the Telangana VAT Appellate Tribunal.
5. Application for stay of collection of disputed tax under Section 31(3)(c) of the A.P. VAT Act, 2005.

Analysis:

1. The High Court considered the case where the 1st respondent had passed an assessment order holding the petitioner liable to pay VAT for the tax period 2011-12 to 2013-14. The petitioner challenged this order through a Statutory Appeal No.PV/82/2017-18 before the Appellate Deputy Commissioner disputing the levy of tax amounting to ?1,17,42,532 along with a stay application.

2. The Appellate Deputy Commissioner rejected the petitioner's stay application on 16-11-2017. Subsequently, the petitioner filed a Revision Petition before the Additional Commissioner, which was also rejected on 06-02-2018. This led the petitioner to file a Writ Petition before the High Court, which was disposed of on 28-02-2018, granting stay of the disputed tax collection pending the appeal subject to certain conditions.

3. Despite the stay granted by the High Court, the Appellate Deputy Commissioner dismissed the main appeal on 16-03-2019. The petitioner then challenged this decision before the Telangana VAT Appellate Tribunal by filing T.A.No.98 of 2019, which is still pending.

4. In the current scenario, the petitioner filed an application seeking stay of the collection of disputed tax under Section 31(3)(c) of the A.P. VAT Act, 2005, before the Additional Deputy Commissioner. The petitioner contended that the respondents were pressuring for payment of the balance disputed tax, which would render the appeal infructuous if collected before the tribunal's decision.

5. Acknowledging the situation and the pending appeal before the Telangana VAT Appellate Tribunal, the High Court directed the stay of recovery of the balance of the disputed tax until the tribunal's decision in T.A.No.98 of 2019. The Court disposed of the Writ Petition accordingly, emphasizing the importance of maintaining the status quo until the appeal process is concluded.