2020 (3) TMI 1095 - HC - VAT and Sales Tax

Filing of the appeals before statutory authorities and recovery of dues under various laws in the situation of outburst of Corona Virus pandemic - HELD THAT - This present scenario of outburst of deadly corona virus is very precarious and sensitive, as the lawyers and the staff rendering assistance to this Court and the Judges are vulnerable, thus in order to prevent such rampant of spread by taking preventive measures, I deem it appropriate to issue general directions to the departments concerned like the banks, financial institutions, Income tax authorities, authorities dealing with the erstwhile KVAT, GST, recovery of tax on motor vehicles and building tax to defer the recovery proceedings or coercive measures till 06.04.2020. In order to overcome the apprehension that this general order may cause impediment or hindrance to persons who are willing to opt for the Amnesty Scheme, it is made clear that this order will not be an impediment for any of such defaulters to avail the Amnesty scheme as and when such scheme is promulgated or in vogue. It is also made clear that the borrowers of the bank, if want to pay off the dues of the bank, it will be open to them to abide by any of the RBI directives or any other directive which is likely to come into place de hors this order - Similarly, defaulters of GST, KVAT, Building tax, Motor Vehicles tax etc. who are willing to pay the demanded amount subject to certain conditions which the department would have fixed within their power to relax or otherwise, would not be bound by this order. In cases wherein tax authorities are required to complete the assessment proceedings before 31.3.2020, they can be deferred subject to the order of this Court but it is made clear that the assessees would not raise the objection of limitation - The adjudicating authorities already seized of the proceedings and communicated for appearance on a particular date there is likelihood of the party may be handicapped in not approaching on a fixed date in view of the present situation. In such circumstance, the adjudicating authorities are directed not to pass any adverse order till 06.04.2020. The Registry is directed to list all the matters pending in this regard batch-wise post 06.04.2020.

Issues:
1. Handling of appeals before statutory authorities and recovery of tax dues
2. Impact of COVID-19 pandemic on court proceedings and staff safety
3. Cases related to Securitization and Reconstruction of Financial Assets
4. Recovery notices issued in Income Tax cases and notices under Section 194N
5. Notices issued under Kerala Value Added Tax Act, 2003
6. Charging of tax on stage carriages and building tax
7. General directions to defer recovery proceedings due to COVID-19
8. Exemption for defaulters opting for Amnesty Scheme or willing to pay demanded amounts
9. Liberty granted to departments for modification of orders in specific cases
10. Deferral of assessment proceedings by tax authorities
11. Seizure and detention of goods and vehicles under GST Act, 2017

Analysis:

1. The judgment addresses various issues concerning the handling of appeals before statutory authorities and the recovery of tax dues under different tax laws. It highlights the challenges faced in such cases and the need for proper precautions during court proceedings.

2. The impact of the COVID-19 pandemic on court proceedings and staff safety is emphasized, with a directive to defer recovery proceedings or coercive measures until a specified date to prevent the spread of the virus among lawyers, staff, and judges.

3. Specific cases related to the Securitization and Reconstruction of Financial Assets Act are discussed, noting the actions taken by Advocate Commissioners and the need for parties to avail remedies under the Act.

4. Concerns regarding recovery notices issued in Income Tax cases, appeals, and notices under Section 194N are raised, highlighting the need for a balanced approach in handling such matters.

5. Notices issued under the Kerala Value Added Tax Act, 2003, and the challenges faced in dealing with them, especially when they are time-barred, are addressed, leading to the filing of writs.

6. The judgment also touches upon matters related to charging tax on stage carriages, building tax, and the need to address issues arising from such tax assessments.

7. General directions are issued to defer recovery proceedings by various departments dealing with tax laws to ensure a cautious approach during the COVID-19 crisis.

8. Exemptions and clarifications are provided for defaulters opting for Amnesty Schemes or willing to pay demanded amounts, ensuring that such individuals are not unduly affected by the general directions issued.

9. Liberty is granted to departments to seek modifications in specific cases, backed by reasonable justifications, to address any unique circumstances that may arise.

10. The judgment also allows for the deferral of assessment proceedings by tax authorities, with a waiver of objections on grounds of limitation by the assesses.

11. Lastly, the judgment addresses issues related to the seizure and detention of goods and vehicles under the GST Act, 2017, providing guidelines for parties affected by such actions and ensuring a fair process during adjudication proceedings.

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