Stayed VAT appeals cannot trigger automatic coercive recovery when delay in disposal is not attributable to the assessee.

Section 60(6) of the Kerala Value Added Tax Act secures speedy disposal of stayed appeals by requiring the Tribunal to decide them within 180 days, but it does not justify automatic coercive recovery where the delay is not attributable to the assessee. The provision may regulate payment pending appeal and can result in vacation of stay, yet its operation must not create undue hardship in a pending appeal supported by an earlier prima facie order. Recovery was therefore kept in abeyance until the appeal is disposed of on merits.

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Issues: Whether recovery could be initiated automatically merely because the Appellate Tribunal had not disposed of the appeal within 180 days after passing a stay order under sub-section (6) of Section 60 of the Kerala Value Added Tax Act, 2003.

Analysis: Sub-section (6) of Section 60 provides for payment of tax pending appeal, empowers the Tribunal to regulate payment on security, requires disposal of a stayed appeal within 180 days, and states that the stay shall stand vacated if the appeal is not so disposed of. The Court held that the provision is intended to secure speedy disposal of appeals, but its operation cannot unfairly penalise an assessee when delay in disposal is not attributable to the assessee. In the circumstances of a pending appeal with an earlier prima facie order on payment, automatic recovery solely because the appeal was not heard within 180 days would cause undue hardship.

Conclusion: Recovery could not proceed automatically on expiry of 180 days, and it was directed to remain in abeyance until disposal of the appeal.

Final Conclusion: The petition was allowed to the extent of protecting the assessee from coercive recovery during pendency of the appeal, while leaving the appeal before the Tribunal to be decided on merits.

Ratio Decidendi: A stay order under the Kerala Value Added Tax Act cannot be treated as automatically authorising coercive recovery against the assessee where non-disposal of the appeal within the stipulated period is not attributable to the assessee and the appeal remains pending.

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