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

Facts

The petitioner, Cochin Sanitary Stores, represented by its partner, filed a writ petition before the High Court of Kerala challenging an order passed by the Deputy Commissioner (Appeals) 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 indicated a hearing on June 6, 2019. The writ petition was filed on June 25, 2019.

Held

The Court acknowledged the petitioner's grievance regarding the hearing but found no scope for interference with the order passed by the Deputy Commissioner (Appeals). The Court noted that the order itself indicated a hearing had taken place. However, to provide some relief, the Court permitted the petitioner to pay the 20% demand in three equal monthly installments, commencing from July 4, 2019. Coercive steps for recovery of the demand were deferred pending compliance with this installment schedule. The Court did not decide on the merits of the original demand or the petitioner's claim of not being heard, focusing instead on facilitating payment.

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, particularly if the petitioner was not afforded a proper hearing, as contemplated under the relevant provisions of the KVAT Act. The petitioner contended that they were not heard by the appellate authority, which is a procedural lapse. The revenue's arguments are not explicitly recorded in the judgment.