2021 (1) TMI 178 - HC - VAT and Sales Tax

Recovery of tax - seeking stay on recovery - deemed stay - pre-deposit as contemplated under Section 62 of the Act - HELD THAT - As the appeal is stated to be filed along with application for interim stay, the respondents-authorities will not take further action pursuant to Annexure-B until consideration of the petitioner s application in such appeal. Petition disposed off.

Summary

Issues:
Challenge to recovery notice under Karnataka Value Added Tax Act, 2003 and the requirement of pre-deposit for deemed stay.

Analysis:
The case involved a writ petition challenging a recovery notice issued under Section 45 of the Karnataka Value Added Tax Act, 2003. The petitioner argued that the notice was issued after an assessment order and while an appeal was pending, along with an application for Stay. The petitioner sought to quash the recovery notice until the appeal was decided. On the other hand, the learned Additional Government Advocate contended that there could be no deemed stay without a pre-deposit as per Section 62 of the Act. The Advocate submitted that the recovery notice could not be quashed, but assured that no further action would be taken until the appeal and the application for interim stay were considered. The Court noted the submissions and disposed of the writ petition accordingly. The judgment highlighted the importance of complying with the statutory requirements for seeking a stay on recovery proceedings under the Act, emphasizing the need for a pre-deposit as a condition for deemed stay.