2020 (7) TMI 584 - HC - VAT and Sales Tax

Amendment in returns of second quarter - recovery of alleged tax - civil appeals pending before Supreme Court - HELD THAT - This Court is of the view that no useful purpose would be served by keeping the petition pending. Consequently, it directs respondent no. 1 to allow the amendment sought by the petitioner in its return of 2nd Quarter for the Financial Year 2015-16 vide application dated 16th June, 2019. However, this direction shall remain suspended till the Civil Appeals pending before the Supreme Court, are decided and this direction shall abide by the decision that the Supreme Court renders. Petition disposed off.

Summary

Issues:
Amendment of return for financial year 2015-16, Quashing of recovery notice for alleged tax, Delay in decision by respondent No.1, Similarity to past cases, Challenge before Supreme Court, Suspension of directions by High Court, Pending civil appeals affecting decisions.

Analysis:
The petitioner filed a writ petition seeking direction to allow the amendment in its return for the second quarter of the financial year 2015-16 and to quash a recovery notice issued by a private party-respondent. The petitioner's counsel argued that the mistake in the return was inadvertent and no actual loss would occur to the Department if the amendment is allowed. The petitioner had submitted relevant documents supporting the request for amendment, emphasizing that similar applications by other parties had been allowed by the Court in the past.

The respondent No.1 did not make a decision on the petitioner's application for amendment, while respondent No.2 issued a demand notice for tax payment based on a notice from respondent No.3. The petitioner contended that allowing the amendment would render the demands raised under the notices infructuous. The respondent No.1 argued that past decisions of the Court, including those related to similar cases, were under challenge before the Supreme Court, and the operation of the judgments had been stayed.

The Court noted the ongoing civil appeals before the Supreme Court and the interim orders suspending certain directions issued by the High Court in similar matters. In light of the circumstances, the Court directed respondent No.1 to allow the petitioner's requested amendment in its return for the second quarter of the financial year 2015-16. However, the implementation of this direction was suspended until the Supreme Court decides on the pending civil appeals, and the High Court's decision would abide by the Supreme Court's ruling. The Court disposed of the present writ petition and pending application with this direction, emphasizing that keeping the petition pending would not serve any useful purpose.