In a recent judgement, the Kerala High Court dismissed the petition of Nirapara Roller Flour Mills as the direction todeposit 10% of the demanded VAT to stay recovery notice under the Kerala Value Added Tax Act(KVAT), 2003 is found to be reasonable.
Nirapara Roller Flour Mills (P) Ltd, the appellant is a private limited company engaged in manufacturing and trading wheat products, among other things. The appellant was served with an order of penalty under section 67(1) of the KVAT Act relating to the year 2009-10. The appellant challenged before the Appellate Authority/2nd respondent by filing an appeal.
The appellant also moved a stay petition. In the meanwhile, the 3rd respondent issued notice initiating revenue recovery steps to realise the demanded amount by way of attachment. The appellant challenged the notice before the Single Judge.
The Single Judge disposed of the writ petition staying the recovery notice till the disposal of appeal on the condition that the appellant shall remit 10% of the penalty amount within one month.
Sri.Ajiv Dev, the counsel appeared for the appellant and Sri.V.K.Shamsudheen, the Senior Government Pleader appeared for the respondent.
A division bench of Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath held that the direction of the Single Judgeto remit 10% of the penalty amount as a condition for stay is reasonable, more so when the appellant has not made out any case for an unconditional stay.
The Court dismissed the appeal and extended the one-month time granted by the Single Judge to remit 10% of the penalty amount.
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