2021 (9) TMI 723 - HC - VAT and Sales Tax

Validity of second appeals - recovery proceedings during the pendency of the appeals before the Tribunal - HELD THAT - Let the second appeals be decided at the earliest. The Tribunal could take up the same for hearing, more particularly, the applications for early hearing as well as applications for stay. The same shall be decided within two weeks of receipt of the copy of this order. This Court has chosen not to enter into the merits of the matter. It is for the Tribunal to decide on the strength of such material placed before it and in accordance with law. Petition disposed off.

Summary

Issues:
Petition seeking writs of certiorari and mandamus, legality of impugned letters, seizure of bank accounts, recovery proceedings during appeal pendency.

Analysis:
The petition was filed by a public limited company registered under the Gujarat Value Added Tax and Central Sales Tax Act seeking various reliefs. The petitioner requested writs to quash letters issued by Respondent No. 4 to banks, allowing operation of bank accounts, and halting recovery proceedings during appeal pendency. The matter was taken up for final hearing promptly at the request of the petitioner's advocate.

The petitioner had filed First Appeals under the Gujarat VAT Act and CST Act against orders passed by Respondent No. 2 for the period 2013-2014 to 2017-2018. The first appellate authority partially allowed the appeals, confirming certain demands under both Acts. Second appeals were then filed within the statutory period, with pre-deposits made each month.

Despite written requests to Respondent No. 3 to refrain from initiating recovery proceedings during the appeal pendency, the State Tax Officer directed banks to cease the petitioner's accounts. The petitioner also sought early hearing of stay applications before the Appellate Tribunal, leading to the present petition before the High Court.

The petitioner's advocate cited various legal authorities to support the submissions made. Details of the pending second appeals before the Gujarat Value Added Tax Tribunal were provided, along with a request for early resolution. The High Court directed the Tribunal to decide on the appeals promptly, including applications for early hearing and stay, within two weeks of the order.

The High Court chose not to delve into the merits of the case, leaving it to the Tribunal to decide based on the presented material and in accordance with the law. Consequently, the petition was disposed of accordingly, emphasizing the importance of timely resolution by the Tribunal.