2015 (5) TMI 497 - HC - VAT and Sales Tax

Waiver of pre deposit - Held that - petitioner was served with proper notice and objection submitted by him was duly considered and it was thereafter, that the proceedings were finalized by the assessing authority vide Ext.P4. In spite of giving an opportunity to produce the relevant records, the petitioner/assessee did not file any profit and loss and the Balance Sheet involving the correct turnover for the year 2009-2010. It was accordingly, that 50% addition was made to the reported turnover and the proceedings were finalized. The proceedings filed before the appellate authority were considered by the said authority. The objection raised from the part of the petitioner was also discussed and it was thereafter that, Ext.P7 order was passed also referring to the merits of the case as given in the concluding paragraph, just above the order portion. - Court does not find any reason to call for interference as the appellate authority has exercised the discretion in a proper manner. Interference is declined and the writ petition is dismissed. Since the time limit fixed is already over, the petitioner is granted a further time of 'three weeks' to comply with the condition imposed so as to avail the benefit of interim stay. - Petition disposed of.

Summary

Issues:
Challenge to condition imposed for interim stay during appeal.

Analysis:
The judgment in question deals with the challenge to a condition imposed by the appellate authority for the petitioner to satisfy 30% of the outstanding demand to enjoy the benefit of interim stay during the pendency of appeal. The petitioner had sought remedy against a penalty order passed on a sister concern, and after availing interim stay, approached the appellate authority with an appeal and a petition for stay. The appellate authority passed an order imposing the condition in question, leading the petitioner to file a writ petition challenging the same.

The Government Pleader referenced the pleadings and proceedings, highlighting the petitioner's alleged suppression of facts and failure to provide relevant records during the assessment proceedings. The assessing authority had made additions to the turnover due to the petitioner's failure to submit necessary financial documents. The appellate authority considered the objections raised by the petitioner before passing the order imposing the condition for interim stay. Ultimately, the Court found no reason to interfere, concluding that the appellate authority had properly exercised its discretion. The writ petition was dismissed, but the petitioner was granted an additional three weeks to comply with the condition for interim stay.

In conclusion, the judgment upholds the condition imposed by the appellate authority for the petitioner to satisfy 30% of the outstanding demand to benefit from interim stay during the appeal process. The Court found no grounds for interference, granting the petitioner a limited extension to comply with the condition. The petitioner was directed to provide a copy of the judgment and the writ petition to the concerned respondent for further action.