BharatTaxGST

M/S.Power Link Builders(P) LTD. vs. Intelligence Officer

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WP(C)/19201/2019HC KeralaGSTCNR KLHC01049168201915 July 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI5 pages
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Facts

The petitioner filed appeals and accompanying stay petitions against penalty orders issued under Section 25(1) of the KVAT Act. Due to the appellate authority's delay in disposing of these stay petitions, the assessing officer initiated recovery proceedings, prompting the petitioner to seek a direction for expeditious disposal.

Held

The High Court directed the appellate authority to consider and dispose of the petitioner's stay petitions within two months. It also ordered that no coercive steps be taken for recovery of the amounts under appeal for a period of ten weeks.

Key Issues

Whether the appellate authority should be directed to expeditiously dispose of stay petitions to prevent coercive recovery actions while appeals against penalty orders are pending.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI MONDAY, THE 15TH DAY OF JULY 2019 / 24TH ASHADHA, 1941 WP(C).No.19201 of 2019 PETITIONER/S: M/S.POWER LINK BUILDERS(P) LTD., G3, AISWARYA,JAAWHAR NAGAR, KAWDIAR POST, THIRUVANANTHAPURAM-695003. BY ADVS. SRI.U.BALAGANGADHARAN SRI.V.JAYANANDAKUMAR RESPONDENT/S: 1 INTELLIGENCE OFFICER, SQUAD NO-III, COMMERCIAL TAXES DEPARTMENT, NEYYATTINKARA, THIRUVANANTHAPURAM, PIN-695121. 2 THE DEPUTY COMMISSIONER (APPEALS), STATE GST DEPARTMENT, TAX TOWERS, KARAMANA POST, THIRUVANANTHAPURAM, PIN-695002. 3 THE ASSISTANT COMMISSIONER, STATE GST DEPARTMENT, THIRUVANANTHAPURAM, PIN-695121. 4 STATE OF KERALA, REPRESENTED BY SECRETARY (TAXES), GOVT. SECRETARIAT, THIRUVANANTHAPURAM, PIN-695121. GP. SMT. M.M. JASMIN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: -2- WP(C).No.19201 of 2019

JUDGMENT The petitioner filed appeals in Exts.P5, P7 and P9 aggrieved by the orders of penalty in Exts. P1, P2 and P3 made under Section 25(1) of the KVAT Act. The petitioner has filed the appeals with stay petitions in Exts.P6, P8 and P10. The petitioner prays for appropriate direction to the appellate authority to consider and dispose of Exts.P6, P8 and P10 expeditiously.

2.

The case of petitioner is that either the mere filing of appeal or mere pendency of appeal does not amount to granting stay by the appellate authority. The delay in considering and disposing of Exts.P6, P8 and P10 results in the assessing officer taking steps for recovering the tax amount which is under challenge in Exts.P5, P7 and P9. The assessing officer, if is successful in his effort the statutory appeal would become either academic or ineffective. It is further contended by the petitioner that in the manner the law provides for protecting the interest of appellant pending appeal, the orders on stay petitions are passed

-3- expeditiously. Hence the writ petition.

3.

Perused Exts. P1, P2, P3, P5, P7, P9, P6, P8 and P10. Prima facie I am satisfied that a case is made out for issuing necessary directions to 2nd respondent to dispose of the stay petitions in Exts.P6, P8 and P10. Having regard to the limited prayer and the grounds referred to above, this Court is satisfied that the writ petition can be disposed of by this order: (a) The appellate authority/2nd respondent considers and disposes of Exts.P6, P8 and P10 applications as early as possible, preferably within two months from the date of receipt of copy of this judgment. (b) The respondents are directed not to take coercive steps or recover the amounts determined in the orders under appeal for ten weeks from today. S.V.BHATTI JUDGE JS

-4- APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE PENALTY ORDER NO.CR.4(16- 17) 15-16 DATED 14.3.2018 OF THE 1ST RESPONDENT. EXHIBIT P2 COPY OF THE PENALTY ORDER NO.CR.4(16- 17) 16-17 DATED 14.3.2018 OF THE 1ST RESPONDENT. EXHIBIT P3 COPY OF THE PENALTY ORDER NO.CR.4(16- 17) 17-18 DATED 14.3.2018 OF THE 1ST RESPONDENT. EXHIBIT P4 COPY OF ORDER DATED 13.4.2018 OF HON'BLE HIGH COURT OF KERALA IN WPC.13710/2018. EXHIBIT P5 COPY OF THE MEMORANDUM OF APPEAL DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P1 ORDER. EXHIBIT P6 COPY OF THE STAY PETITION DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P5 APPEAL. EXHIBIT P7 COPY OF THE MEMORANDUM OF APPEAL DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P2 ORDER. EXHIBIT P8 COPY OF THE STAY PETITION DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P8 APPEAL. EXHIBIT P9 COPY OF THE MEMORANDUM OF APPEAL DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P3 ORDER.

-5- EXHIBIT P10 COPY OF THE STAY PETITION DATED 29.3.2019 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT AGAINST EXT.P11 ORDER. EXHIBIT P11 COPY OF THE REVENUE RECOVERY NOTICE NO.B3/1794/2019 DATED 25.6.2019 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER.

Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.