2023 (6) TMI 581

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....era V. Menon By Adv Sri. Tomson T. Emmanuel By Adv. K.M. Firoz JUDGMENT A.K. JAYASANKARAN NAMBIAR, J. In these appeals preferred by the State against the common judgment dated 11.01.2017 of a learned Single Judge in WP(C). Nos. 918, 922, 1028 & 1084 of 2017, the only grievance projected by the revenue is with regard to the findings in paragraph six of the impugned judgment, which reads as follows: "6. However, now the statute itself provides for a blanket stay on deposit of 20% of disputed amount of tax along with collected tax. The first appellate authorities then cannot go beyond the 20% as indicated in the proviso. The consideration as noticed herein above, assumes a different colour insofar as the appellate authorities would hav....

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....ed through a notification dated 13.11.2016, whereby the following proviso was inserted after the existing proviso to Section 55 (4) of the KVAT Act: "Provided further that where the appellant remits 20% of the disputed amount of tax along with collected tax, if any, further proceedings against recovery shall stand stayed till disposal of the appeal" 3. The issue that was considered by the learned Single Judge was the impact of the said proviso and specifically as to whether, after the introduction of the said proviso, the Appellate Authority had the power to insist on the assessee paying more than 20% of the disputed tax as a condition for stay of recovery of the balance amount of disputed tax pending disposal of the appeal. The learned....

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....f the appeal by the First Appellate Authority, the legislature does not prevent the Appellate Authority from insisting on a deposit of more than 20% of the disputed tax amount as a condition for a stay of recovery of balance amount pending disposal of the appeal, from an assessee who has chosen not to pay the 20% of the disputed amount of tax along with the collected tax or at least at the time of filing the appeal before the Appellate Authority. As per the statutory provisions, while the assessee has an option of payment of 20% of the disputed tax along with the collected tax, or at the time of filing the appeal before the Appellate Authority and seeking immunity from recovery proceedings for the balance amount of tax pending disposal of t....