2019 (6) TMI 1310 - HC - VAT and Sales Tax

Interim stay granted on disputed tax & penalty under Telangana VAT Act. Payment directive issued.

Orix Auto Infrastructure Services Limited Versus The Commercial Tax Officer

Orix Auto Infrastructure Services Limited Versus The Commercial Tax Officer - TMI Issues: Conditions for grant of stay of collection of disputed tax and penalty under the Telangana Value Added Tax Act, 2005.The High Court of Telangana and Andhra Pradesh, comprising Sri V Ramasubramanian and Sri P. Keshava Rao, JJ., addressed the issue of conditions imposed by the Additional Commissioner (ST) for the grant of stay of collection of disputed tax and penalty under the Telangana Value Added Tax Act, 2005. The dealer had filed writ petitions challenging the conditions. The petitioner had filed regular first appeals before the Appellate Deputy Commissioner against the penalty and order of assessment and had paid 12.5% of the disputed tax and penalty at the time of filing the appeals. The court noted that the petitioner had paid some amounts subsequently as well. The court opined that directing the petitioner to pay 25% of the disputed tax and penalty for the grant of stay pending first appeals would serve the interests of justice, considering the availability of a second appeal to the Tribunal where the petitioner may be required to pay more. Consequently, the court disposed of the writ petitions by granting interim stay of collection of disputed tax and penalty, subject to the petitioner paying 25% of the disputed penalty and tax within six weeks from the date of receipt of the order. The petitioner would receive credit for the amounts already paid, meaning the petitioner should pay 25% less the amount already remitted. Failure to comply with the order would result in the vacation of the stay. The court made no order as to costs and closed any pending Miscellaneous Petitions.