Cochin Sanitary Stores vs. Deputy Commissioner (Appeals)-V

Facts

The petitioner, Cochin Sanitary Stores, filed a writ petition before the High Court of Kerala challenging an order passed by the Deputy Commissioner (Appeals)-V, SGST Department. This order was passed under the KVAT Act. The impugned order directed the petitioner to pay 20% of the demand as a condition for a stay. The petitioner claimed they were not heard, although the order itself indicated a hearing on June 6, 2019. The tax period and the specific demand amount were not explicitly stated in the judgment.

Held

The Court noted that the petitioner was heard on June 6, 2019, as indicated in the impugned order, despite the petitioner's claim of not being heard. Considering the nature of the order passed by the appellate authority, the Court found no scope for interference. However, to provide some relief, the Court permitted the petitioner to pay the 20% of the demand in three equal monthly installments, commencing from July 4, 2019. Coercive steps for the recovery of the demand were ordered to be deferred in line with these installment directions. The Court did not explicitly decide on the merits of the original demand or the petitioner's claim of not being heard, focusing instead on the procedural aspect of the conditional stay.

Key Issues

1. Whether the Deputy Commissioner (Appeals) erred in directing the petitioner to pay 20% of the demand as a condition for a stay, despite the petitioner's contention of not being heard? The petitioner argued that they were not afforded a proper hearing before the impugned order was passed. The Revenue's contention was not explicitly recorded in the judgment, but the order itself indicated that the petitioner was heard on June 6, 2019.