2024 (4) TMI 814 - HC - VAT and Sales Tax

Recovery of alleged outstanding dues of unpaid tax amounts - Section 29 of APVAT Act, 2005 - Appeal was dismissed for default due to the petitioner's repeated non-appearance despite being granted several adjournments. - HELD THAT - Considering the submissions advanced, it is evident from the appellate order dated 19.07.2023 that the appeal is of the year 2015 and inspite of several adjournments, the petitioner was not turning up for hearing and consequently, the appeal was dismissed for default against which application for restoration of appeal filed recently is pending. To provide opportunity of hearing to the petitioner on the merits of the application, and if allowed by the appellate authority, to provide opportunity of hearing on merits of the appeal, it is considered to be in the interest of justice, by moulding the relief, to direct the respondent No.4 to consider and decide the petitioner s application for restoration (Ex. P4) within a period of six weeks from the date of a copy of this order is produced before the said authority and if the appeal is restored, to decide the same also expeditiously and till such time, any coercive action, pursuant to the notices for recovery of outstanding dues towards the alleged unpaid tax amounts, deserves to be stayed, subject to the condition that the petitioner deposits 25% of the disputed amount, additionally. The Writ Petition is disposed of finally.

Summary

Issues involved:
The issues involved in this case are the recovery of alleged outstanding dues of unpaid tax amounts under Section 29 of the Andhra Pradesh Value Added Tax Act 2005 and the pending restoration application before the APVAT Appellate Tribunal.

Recovery of outstanding dues:
The petitioner filed T.A. No. 23 of 2015 after complying with the statutory deposit of 25% against the order of assessment. The appeal was dismissed for default on 19.07.2023. The petitioner applied for restoration of the appeal on 01.04.2024, which is pending before the APVAT Appellate Tribunal. The respondents issued notices dated 22.03.2024 and 30.03.2024 for the recovery of alleged outstanding dues of unpaid tax amounts under Section 29 of APVAT Act, 2005.

Consideration of restoration application:
The petitioner requested direction for respondent No. 4 to decide the restoration application within a specified period and to stay the recovery proceedings until the disposal of the application. The Government Pleader argued that the petitioner, despite being granted adjournments, did not attend the hearings, leading to the dismissal of the appeal for default. It was suggested that the petitioner may need to deposit additional amounts out of the outstanding tax along with the statutory deposit of 25%.

Court's Decision:
The Court considered the appeal dismissal in 2015 and the pending restoration application, noting the petitioner's failure to attend hearings despite adjournments. In the interest of justice, the Court directed respondent No. 4 to decide the restoration application within six weeks and stay coercive actions for recovery, subject to the condition that the petitioner deposits 25% of the disputed amount additionally. The petitioner was given three weeks to make the deposit, and no recovery was to be made during this period. Default in deposit would allow the authorities to proceed with recovery as per the law. The writ petition was disposed of with no order as to costs, and any pending miscellaneous petitions were also closed accordingly.