2018 (5) TMI 276 - HC - VAT and Sales Tax

Initiation of recovery proceedings, even though the appeal and application for stay are pending - Held that - Taking note of the similar orders passed by this Court in analoguous situations, the petitioner can be given some respite from the rigor of recovery, at least until such time as the stay petition is considered by the appellate authority - recovery proceedings are to be kept in abeyance till the time the 2nd respondent passes an order on the stay petition, and communicates the same to the petitioner - petition disposed off.

Summary

Issues:
Challenge to recovery action post assessment order, pending appeal and stay petitions before Appellate Authority.

Analysis:
The petitioner challenges the recovery action initiated by competent authorities following an assessment order against him, while his appeal and stay petitions are pending before the Appellate Authority. The petitioner seeks a halt on recovery until the Appellate Authority considers the stay petition. The Government Pleader argues that due to the substantial amount involved, a stay order may only be granted on terms.

The Court, after considering the arguments, observes similar situations and decides to provide relief to the petitioner from the recovery process until the Appellate Authority reviews the stay petition. Consequently, the Court orders the Appellate Authority to expedite the consideration and decision on the appeals and stay petitions filed by the petitioner within one month. Until the Appellate Authority communicates its decision on the appeals and stay petitions, all recovery actions based on the demand notice shall be suspended.

To ensure a prompt resolution of the stay petitions, the petitioner is directed to present a certified copy of the judgment and the writ petition to the Appellate Tribunal. The time frame for the Appellate Authority to decide on the appeals and stay petitions will commence from the date of submission of these documents to the Tribunal.