2014 (2) TMI 1395 - HC - VAT and Sales Tax

High Court halts VAT recovery pending stay decisions, stresses fairness, and due process. Deputy Commissioner to expedite stay applications.

Sahajanand Technologies (P) Ltd. Versus State of Gujarat & 3 Ors.

The Gujarat High Court quashed the recovery action by the Department for VAT demand until the pending stay applications were decided. The Deputy ... Seeking recovery of VAT demand - against assessment orders, three appeals have been preferred by the petitioner - HELD THAT:- At this stage, atleast till such stay applications are disposed of, without there being any special facts on record, the action initiated by the Department in recovering the tax demand is quashed. The Deputy Commissioner [Appeals] before whom such stay applications are pending may, however, endeavour to dispose of such applications latest by 31st March 2014, for which the petitioner shall cooperate. Petition disposed off. Issues involved: Recovery of VAT demand, Stay applications pending, Quashing of recovery actionIn this judgment by the Gujarat High Court, the main issue revolved around the steps taken by the respondents for the recovery of VAT demand from the petitioner. It was acknowledged that the demands were related to three assessment years with pending appeals and applications for stay or waiver of predeposit. The court noted that until the stay applications were decided, and in the absence of any exceptional circumstances, the recovery action by the Department was quashed. The Deputy Commissioner was directed to expedite the disposal of the stay applications by a specified date, and the petitioner was instructed to cooperate in this process. Ultimately, the petition was disposed of in accordance with these directions. The judgment focused on ensuring fairness and due process in the recovery of tax demands, emphasizing the importance of resolving stay applications promptly to avoid unnecessary hardship to the petitioner.