2019 (6) TMI 1310 - HC - VAT and Sales Tax

Conditions imposed for grant of stay - Telangana VAT Act - At the time of filing of appeals, the petitioner has paid 12.5% of the disputed tax and disputed penalty. It is stated that even subsequently, they have paid some amounts - HELD THAT - We are of the view that directing the petitioner to pay 25% of the disputed tax and 25% of the disputed penalty, for the grant of stay, pending first appeals, would meet the ends of justice. This is for the reason, that the petitioner has another tier of remedy in the form of second appeal to the Tribunal and that at that time, he may be asked to pay more amounts. The writ petitions are disposed of granting interim stay of collection of disputed tax and disputed penalty subject to the petitioner paying, a sum equivalent to 25% of the disputed penalty and 25% of the disputed tax within a period of six (6) weeks from the date of receipt of a copy of this order.

Summary

Issues: Conditions for grant of stay of collection of disputed tax and penalty under the Telangana Value Added Tax Act, 2005.

The High Court of Telangana and Andhra Pradesh, comprising Sri V Ramasubramanian and Sri P. Keshava Rao, JJ., addressed the issue of conditions imposed by the Additional Commissioner (ST) for the grant of stay of collection of disputed tax and penalty under the Telangana Value Added Tax Act, 2005. The dealer had filed writ petitions challenging the conditions. The petitioner had filed regular first appeals before the Appellate Deputy Commissioner against the penalty and order of assessment and had paid 12.5% of the disputed tax and penalty at the time of filing the appeals. The court noted that the petitioner had paid some amounts subsequently as well. The court opined that directing the petitioner to pay 25% of the disputed tax and penalty for the grant of stay pending first appeals would serve the interests of justice, considering the availability of a second appeal to the Tribunal where the petitioner may be required to pay more. Consequently, the court disposed of the writ petitions by granting interim stay of collection of disputed tax and penalty, subject to the petitioner paying 25% of the disputed penalty and tax within six weeks from the date of receipt of the order. The petitioner would receive credit for the amounts already paid, meaning the petitioner should pay 25% less the amount already remitted. Failure to comply with the order would result in the vacation of the stay. The court made no order as to costs and closed any pending Miscellaneous Petitions.