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TMI Blog2021 (10) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate authority under Section 31 of the Act and therefore, the 2nd respondent did not have jurisdiction to entertain an application for stay of collection of tax pending such appeal. When a litigant has a right to prefer a second appeal against an order passed by the first appellate authority, it would be wholly unjust to say that he would have no right to seek suspension of collection of the remaining tax in dispute pending such appeal in appropriate cases where a strong arguable case is made out in his favour. If so, the second appeal would be rendered infructuous and extreme prejudice would be caused to the appellant - where no order of stay of collection of remaining tax was passed in favour of the appellant under Sub-Section (3)(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the lease agreement which shows that control of the buses in question lay with the petitioner. It is also submitted that his client has deposited 50% of the tax in dispute at the time of filing of the appeal. In response, Sri Sekhar, learned Government Pleader for Commercial Tax, submits that the 2nd respondent does not have jurisdiction to entertain the stay application pending hearing of appeal before the Tribunal under Section 33 of the Andhra Pradesh Value Added Tax Act, 2005 (for short, the Act ). Power of the 2nd respondent to grant stay pending appeal before the Tribunal is provided under Section 33(6) of the Act, which reads as follows: 33(6)(a) Where a VAT dealer or TOT dealer or any other dealer, objecting to an order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 31 of the Act, which reads as follows: (3)(a) Where an appeal is admitted under subsection (1), the appellate authority may, on an application filed by the appellant and subject to furnishing of such security or on payment of such part of the disputed tax within such time as may be specified, order stay of collection of balance of the tax under dispute pending disposal of the appeal; 3 (b) Against an order passed by the appellate authority refusing to order stay under clause (a), the appellant may prefer a revision petition within thirty days from the date of the order of such refusal to the Additional Commissioner or the Joint Commissioner who may subject to such terms and conditions as he may think fit, order stay of collecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se may be, under Sub-Section (3)(a) or (3)(b) of Section 31 of the Act. The Act also does not contain any express prohibition in granting stay of collection of remainder tax pending second appeal in such cases provided the facts of the case justify such relief. When a litigant has a right to prefer a second appeal against an order passed by the first appellate authority, it would be wholly unjust to say that he would have no right to seek suspension of collection of the remaining tax in dispute pending such appeal in appropriate cases where a strong arguable case is made out in his favour. If so, the second appeal would be rendered infructuous and extreme prejudice would be caused to the appellant. Keeping this in mind we are of the view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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