The High Court of Kerala has extended the stay on coercive actions against the assessee P. Somarajan, the proprietor of Hotel Nila Palace in Cheerankavu, Kollam. The extension of the stay comes in light of the pending Value Added Tax (VAT) appeal before the 1st Appellate Authority.
The review petitioner, Somarajan, represented by Harisankar V. Menon, Meera V. Menon, R. Sreejith, K. Krishna and Parvathy Menon, sought an extension of the stay on coercive proceedings until the appeal before the 1st Appellate Authority is resolved. They argued that maintaining the stay on coercive actions was essential to protect their client’s interests during the appeal process.
The High Court acknowledged the petitioner’s intention behind the revision petition, which was to maintain the stay on coercive actions. The bench recognised the need to prevent any coercive proceedings while the appeal is still pending, ensuring that the appellant’s rights are not compromised during the legal process.
The bench directed the 2nd respondent, the Secretary, Kerala Value Added Tax (KVAT) Appellate Tribunal, Thiruvananthapuram to file an affidavit. However, it was noted that the 1st respondent, the Deputy Commissioner of State Tax had submitted an affidavit, highlighting that the appeal was scheduled for November 2, 2023.
The 1st respondent argued that the appeal in question had been scheduled for November 2, 2023 and contended that this fact justified keeping the coercive proceedings in abeyance for a temporary period, aligning with the petitioner’s request for an extension of the stay.
Taking these developments into account, the single bench of Justice Bechu Kurian Thomas modified the judgment issued on January 28, 2022.
The modification to the judgment states that coercive proceedings against the petitioner would be held in abeyance for a period of three months from the date of receiving a copy of the court’s latest judgment. Therefore, the stay on coercive actions will continue until November 30, 2023, offering the appellant temporary relief from any immediate legal consequences.
The bench emphasised the importance of preserving the rights of individuals and business owners who may be subjected to coercive actions by government authorities while their legal appeals are pending.
In result, the bench allowed the review petition filed by the petitioner and also extended the stay on coercive actions against the petitioner until November 30, 2023, due to the pending VAT appeal.
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