Usha Breco LTD vs. The Commissioner Of State Goods And Service Taxes
Held
The Court disposed of the writ petition by directing the 3rd respondent, the Kerala State Value Added Tax Appellate Tribunal, to consider and pass reasoned orders on the petitioner's stay petition (Ext.P4) within a period of two months from the date of receipt of a copy of the judgment, after hearing the petitioner. The Court further directed that recovery steps for the amounts confirmed by the penalty order (Ext.P1), including the encashment of the bank guarantee (Ext.P5), shall be kept in abeyance until such time as orders are passed by the Tribunal and communicated to the petitioner. The petitioner was directed to submit copies of the writ petition and the judgment to the Tribunal for further action. The issue of the validity of the penalty order itself or the merits of the appeal were not decided.
Facts
The petitioner, Usha Breco Ltd., is challenging a penalty order (Ext.P1) passed under the KVAT Act. An appeal filed before the First Appellate Authority was rejected (Ext.P2). Subsequently, the petitioner filed an appeal along with a stay petition (Ext.P4) before the Kerala State Value Added Tax Appellate Tribunal (3rd respondent). The petitioner also furnished a bank guarantee (Ext.P5) as security. The petitioner contends that recovery steps were initiated against them for the amounts confirmed by the penalty order, even before the stay petition was considered by the Tribunal. The writ petition was filed before the High Court of Kerala.
Key Issues
1. Whether the recovery steps initiated by the respondents for the amounts confirmed by Ext.P1 penalty order are premature, given that a stay petition is pending before the 3rd respondent Tribunal? Petitioner's arguments: The petitioner argued that recovery steps, including the encashment of the bank guarantee, were being taken prematurely, prior to the consideration and disposal of their pending stay petition by the Tribunal. They sought to prevent such recovery actions until a decision on their stay application was made. Revenue's arguments: The judgment does not record any specific arguments made by the revenue or official respondents. The Government Pleader appeared for the official respondents.
Sections Cited
KVAT Act
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR THURSDAY, THE 05TH DAY OF DECEMBER 2019 / 14TH AGRAHAYANA, 1941 WP(C).No.33049 OF 2019(E) PETITIONER USHA BRECO LTD, JADAYUPARA, CHADAYAMANGALAM P.O., KOLLAM DISTRICT, REPRESENTED BY ITS AUTHORIZED SIGNATORY SHOBY P.JACOB. BY ADVS. SRI.BOBBY JOHN SRI.S.AJAYGHOSH KUMAR RESPONDENT 1 THE COMMISSIONER OF STATE GOODS AND SERVICE TAXES, KERALA TAX TOWER, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM DISTRICT, PIN- 695 002. 2 THE STATE TAX OFFICER (INTELLIGENCE), SQUAD NO.IV, STATE GOODS AND SERVICE TAX DEPARTMENT, KOLLM AT PUNALUR, MOORTHIKAVU, PUNALUR, KOLLAM DISTRICT, PIN - 691 305. 3 THE KERALA STATE VALUE ADDED TAX APPELLATE TRIBUNAL, THIRUVANANTHAPURAM, SASTHAMANGALAM, THIRUVANANTHAPURAM, PIN - 695 010. 4 THE INDIAN BANK, CHADAYAMANGALAM BRANCH, MAIN ROAD, CHADAYAMANGALAM, KOLLAM DISTRICT, PIN - 691 536, REPRESENTED BY ITS BRANCH MANAGER. OTHER PRESENT: GP DR. THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C).33049/2019 2 JUDGMENT Against Ext.P1 penalty order under the KVAT Act, the
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