M/S.Urc Construction PVT. LTD. vs. The Assistant Commissioner Of State Tax
Held
The High Court set aside the condition for depositing 25% of the assessed tax, finding the appellant had established a prima facie case regarding the assessment being time-barred. It granted an unconditional stay on recovery proceedings for the amounts confirmed by Ext.P2, remitting the writ petition to the Single Judge for consideration on merits.
Facts
The appellant challenged an interim order of a Single Judge that mandated a 25% tax deposit for a stay on recovery of dues under an assessment order (Ext.P2). The original writ petition questioned the legality of Ext.P2, arguing it was passed beyond the limitation period prescribed under the KVAT Act. The interim stay was subsequently vacated due to non-compliance with the deposit condition.
Key Issues
The key issue was whether an assessment order passed beyond the statutory limitation period under Section 25(1) of the KVAT Act, even if pursuant to an audit objection under Section 25A, warranted a conditional stay of recovery pending the writ petition.
Sections Cited
Section 25A of the KVAT Act, Section 25(1) of the KVAT Act
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. MONDAY, THE 20TH DAY OF MAY 2024 / 30TH VAISAKHA, 1946 WA NO. 506 OF 2024 AGAINST THE ORDER/JUDGMENT DATED IN WP(C) NO.2715 OF 2024 OF HIGH COURT OF KERALA APPELLANT/PETITIONER M/S.URC CONSTRUCTION PVT. LTD., URC NAGAR, 3RD STREET, VEERAPPANPALAYAM, THINDAL P.O., ERODE, TAMIL NADU, REPRESENTED BY ITS ASST. GENERAL MANAGER (ACCOUNTS & TAXATION), S. BOOPATHI, PIN - 638012 BY ADVS. R.SREEJITH K.KRISHNA RESPONDENTS/RESPONDENT 1 THE ASSISTANT COMMISSIONER OF STATE TAX, TAX PAYER SERVICES CIRCLE, PALAKKAD EAST, STATE GST DEPARTMENT, PALAKKAD, PIN - 678001 2 THE STATE TAX OFFICER (WORKS CONTRACT), STATE GST DEPARTMENT, PALAKKAD, PIN - 678001 3 THE COMMISSIONER OF COMMERCIAL TAXES, TAX TOWERS, KILLIPPALAM, KARAMANA, THIRUVANATHAPURAM, PIN - 695002 OTHER PRESENT: SR.GP-V.K.SHAMSUDHEEN. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 20.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.A.No.506 of 2024 2
J U D G M E N T ============ Dated this the 20th day of May, 2024 Dr.
A. K.Jayasankaran Nambiar
The judgment continues below.
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