Karnataka HC directs to Amend VAT Act to stop Unnecessary Litigation in High Court [Read Order]

Imposition - Karnataka High Court - ITAT - Taxscan

Justice Vineet Kothari of Karnataka High Court had directed State Government to consider amendments in Karnataka Value Added Tax Act (KVAT) to stop unnecessary litigation in High Court.

While disposing the petition, the Court observed that, It is unfortunate that in view of the limited power given to the Tribunal and not empowering it to extend its own stay order by the said legislative mandate, while the Tribunal finds itself unable to decide all the pending appeals within the stipulated time frame of one year and on account of this legislative lacunae despite there being good intention for the reasons beyond the control of Tribunal this Court is flooded with these kind of petitions unnecessarily.

The Court also said that, the State should immediately consider appropriate amendments to the said provisions of Section 63(7)(b) of the KVAT Act, 2003 for making powers of the concerned Appellate Tribunal effective while dealing with the pending appeals before them so that no such unnecessary litigation is brought before this Court. State cannot deliberately generate a litigation for the Constitutional Courts.

Read the full text of the Order below.

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