A Division Bench of the Kerala High Court directed the petitioner to remit balance tax amount in 3 instalments as per Kerala Value Added Tax Act, 2003 (KVAT) order taking into consideration the financial incapacity of the petitioner, Pyramid Architects and Engineers.
The original tax petition was filed by the petitioner challenging the conditional order passed by the third respondent, the Kerala Value Added Tax Appellate Tribunal, Kozhikode – directing the petitioner to deposit 10% of the balance tax demanded for the years, 2014-15 & 2015-16, and executing simple bond for the balance amount to the satisfaction of the assessing authority, within one month from the date of receipt of that order.
Aggrieved by the assessment orders for the assessment years, 2014-15 & 2015- 16, passed by the first respondent, the State Tax Officer, the petitioner filed appeals before the second respondent – the Deputy Commissioner (Appeals). On dismissal of the above appeals, second appeals along with petitions for condonation of delay in filing the appeals and for stay, were filed before the KVAT Appellate Tribunal. In the petitions for stay, the KVAT Appellate Tribunal, aggrieved by which, the petitioner has come up before the High Court with the original petition.
The counsel for the petitioner, S.Anilkumar, submitted that the conditional order passed by the KVAT Appellate Tribunal is onerous and the petitioner is financially incapacitated so as to comply with the same. It was further submitted that at the time of filing first appeals, the petitioner had deposited 20% of the amount demanded and hence, the condition now imposed may be set aside.
V.K.Shamsudheen, the Senior Government Pleader, submitted that having lost the case in the first appeal, the KVAT Appellate Tribunal directed the petitioner to pay only 10% of the balance tax demanded, which is reasonable.
The Coram comprising Justice A Muhamed Mustaque and Justice Shoba Annamma Eapen observed that “we do not find any reason to interfere with Ext.P6 (the common stay) order. Sufficient reasons have been stated by the Appellate Tribunal while passing Ext.P6 order. However, we feel that the petitioner can be given instalment facility to pay off the amount now demanded as per Ext.P6.”
The Bench further allowed the petitioner to remit the amount demanded as per Ext.P6 (the common stay order) in three equated monthly instalments.
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