2018 (6) TMI 70 - HC - VAT and Sales Tax

Stay on Recovery of assessed tax - recovery actions initiated inspite of pending appeals and the applications for stay - Held that - Taking note of similar orders passed by this Court in analoguous situations, it is of the view that the petitioner can be given some respite from the rigor of recovery, at least until such time as his stay petition is considered by the 2nd respondent - the 2nd respondent are directed to take up, consider and pass orders on Exts.P3, P3(a) and P3(b) stay petitions preferred by the petitioner, within a period of one month from the date of receipt of a copy of this judgment - Until such time as the 2nd respondent passes an order on the stay petition, and communicates the same to the petitioner, all steps for recovery of amounts against the petitioner shall be kept in abeyance.

Summary

Issues:
1. Impugning action for recovery post-assessment order
2. Pending appeals and stay applications before the Appellate Authority
3. Request for interdicting recovery until stay petition is considered

Analysis:
The petitioner challenged the recovery action initiated post an assessment order, contending that appeals and stay applications were pending before the Appellate Authority. The petitioner sought a halt to the recovery process until the stay petition was addressed. The Government Pleader acknowledged the pending appeals but argued against granting a stay due to the substantial amount involved.

The Court considered both parties' submissions and noted previous similar orders in analogous situations. The Court opined that the petitioner deserved relief from immediate recovery until the stay petition was adjudicated by the Appellate Authority. Consequently, the Court directed the Appellate Authority to expedite the consideration and decision on the pending stay petitions within a month from the judgment's receipt.

To ensure prompt action on the stay petition, the petitioner was instructed to provide a certified copy of the judgment and the writ petition to the Appellate Authority. The stay on recovery actions was to remain in effect until the Appellate Authority communicated its decision on the stay petitions to the petitioner. The Court's order aimed to balance the petitioner's right to challenge the assessment with the authorities' interest in recovering the assessed amounts.