Interim stay on VAT reimbursement direction where appeal raised a substantial challenge to later VAT demand and alleged admission.

Interim protection was sought against a direction requiring reimbursement of VAT charges pending appeal. The Court noted that the appeal was entertained as within limitation in view of Supreme Court orders extending limitation during the COVID-19 period. It also recorded a substantial challenge to the Tribunal's treatment of an alternate submission as an admission and to the legality of a later VAT demand after the final demand note and handing over of possession. The respondent was given time to file objections, and interim stay was granted on operation of the impugned judgment and order insofar as it required reimbursement of VAT charges.

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Issues: Whether interim protection should be granted against the impugned direction requiring reimbursement of VAT charges pending consideration of the appeal.

Analysis: The appeal was entertained on the basis that it was within limitation in view of the Supreme Court's orders on limitation during the COVID-19 period. For interim relief, the Court noted that the challenge was confined to the direction for reimbursement of VAT. It found that the appellant had raised a substantial challenge to the Tribunal's treatment of the alternate submission as an admission and to the legality of a later demand for VAT after the final demand note and handing over of possession. The matter was therefore found to require consideration, and the respondent was given time to file objections.

Conclusion: Interim stay was granted on the operation of the impugned judgment and order insofar as it required reimbursement of VAT charges by the appellant to the respondent.

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