2024 (8) TMI 591 - SCH - VAT and Sales Tax

Supreme Court Addresses Appeals on Tax Dispute; Disapproves High Court's 25% Deposit Order Approach, Hearing Set for 2024.

THE COMMERCIAL TAX OFFICER (INT) & ORS. Versus M/s KEI RSOS MARITIME LIMITED & ORS.

The SC granted leave and disposed of the appeals, challenging the HC's decision to grant interim relief contingent on depositing 25% of the disputed tax. ... Declination by High Court to entertain the writ petitions filed by the respondents for challenging the assessment orders - relegated to the remedy of statutory appeal - objection of the appellants is to that part of the impugned order by which till the disposal of the appeal, the High Court granted interim relief subject to respondents’ depositing 25% of the disputed tax within eight weeks - HELD THAT:- The appellants are right to the extent that the High Court could not have granted interim relief which will operate till the disposal of the appeals which were likely to be filed by the respondents. Grant of interim relief is something which should have been left by the High Court to the Appellate Authorities. At highest, the High Court could have granted interim relief for a limited duration to enable the respondents to prefer an appeal and seek appropriate interim relief therein. Though the approach of the High Court of granting interim relief till disposal of the appeal, not approved on facts, the impugned orders are not interfered with - appeals are disposed of. The Supreme Court granted leave and disposed of appeals where the High Court granted interim relief subject to depositing 25% of disputed tax, which was not approved by the Supreme Court. The appeals by respondents are fixed for hearing on September 26, 2024. The Supreme Court did not interfere with the impugned orders but did not approve of the High Court's approach.