Kerala High Court Stay Order on Tax Recovery Pending Appeal

The High Court of Kerala granted a stay on the recovery of tax under Ext.P6 until the final disposal of Ext.P7 appeal. The Court directed the first appellate authority to decide on the appeal within three months from the date of receipt of the judgment copy, following due procedure and rules of hearing. The decision was made in consideration of the appellant's submission on service tax payment and additional demand, emphasizing the need for discretion in granting a stay order during the appeal process.

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Issues involved: Stay of recovery of tax u/s Ext.P6 during pendency of appeal, time frame for consideration and decision of appeal.

Summary:

The High Court of Kerala, in the case, considered the appellant's submission regarding the payment of service tax and the demand for additional payment. The Court acknowledged the nature of findings in Ext.P1, following the decision in Pest Control India v. Union of India [75 STC 188]. The learned senior counsel highlighted the need for discretion in granting an order of stay for the recovery of tax due under Ext.P6 during the appeal process. The Court agreed with the request to consider and decide upon the appeal within a specified time frame.

In modification of the impugned judgment, the Court ordered that the recovery of tax due under Ext.P6 would be stayed until the final disposal of Ext.P7 appeal. The first appellate authority was directed to decide upon the appeal following due procedure and rule of hearing within a time limit of three months from the date of receipt of the judgment copy. The writ appeal was accordingly ordered by the Court.

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