Kerala High Court orders expedited review of stay Petition to Halt Enforcement of Contested VAT Assessments [Read Order]

The High Court of Kerala has issued an order directing the expedited review of the stay petition filed by the petitioner. The directive aims to halt the enforcement of contested VAT (Value Added Tax) assessments, pending the outcome of the petition.

The petitioner, Chothy’s Building & Promoters Pvt. Ltd., represented by its Managing Director, Mr. B. Karthikesan Nair, had approached the High Court seeking relief through a writ petition.

The petitioner company contested an assessment order and an appeal order issued by the State Tax Officer (Works Contract), State Goods and Services Tax (SGST) Department, Thiruvananthapuram.

In response to the adverse rulings, the petitioner had filed an appeal along with a stay petition before the second respondent, the Additional Secretary of the Agricultural Income Tax and Kerala Value Added Tax (AIT & ST/KVAT) Appellate Tribunal located in Sasthamangalam, Thiruvananthapuram.

During the pendency of these appeals, the Deputy Tahsildar of Thiruvananthapuram Taluk issued a notice causing apprehension that the authorities might enforce the contested assessments. This led to the petitioner filing the writ petition before the Kerala High Court.

The petitioner was represented by Mr. U. Balagangadharan and V. Jayanandakumar while the respondent revenue was represented by Smt. Thushara James.

The second respondent, Additional Secretary, AIT & ST/KVAT Appellate Tribunal, was directed to promptly consider and dispose of the petitioner’s stay petition in accordance with the law.

The single bench of Justice C.S. Dias emphasised the importance of expeditious action, setting a deadline of three months from the date of receipt of a certified copy of the judgment. During this process, the petitioner will be given an opportunity to be heard.

The bench made it clear that if the second respondent intended to issue any conditional interim orders of stay, the tribunal must provide reasons for such decisions.

Until a final determination is reached on the stay petition, all further proceedings related to the contested assessment orders and the notice were ordered to be deferred.

The bench emphasised the importance of timely review of the stay petition preventing any immediate enforcement of the contested VAT assessments. The bench also emphasised the need for reasons in the event of conditional interim orders. The order is expected to provide the petitioner with a fair opportunity to present their arguments.

To Read the full text of the Order CLICK HERE

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