Kerala High Court Orders Immediate Deposit of 20% of Disputed Tax in VAT Appeal to Halt Revenue Recovery [Read Order]

The High Court of Kerala has ordered the petitioner, M/S. Cherakulam Towers & Highway Resort, to deposit 20% of the disputed tax amount within 15 days to keep the revenue recovery notice in abeyance until the finalisation of their appeal. The court addressed the issue of pre-deposit requirement in tax dispute cases and the decision ensures that the petitioner complies with this requirement to prevent immediate revenue recovery actions.

The case involved M/S. Cherakulam Towers & Highway Resort, located in Amballur, Thrissur, represented by Mr. M. J. Joseph, Managing Partner. The petitioner had raised concerns about the disputed tax amount, and the court’s decision had a direct impact on halting revenue recovery efforts.

The petitioner, represented by P. S. Soman and T. Radhamony approached the Kerala High Court seeking a Writ in the nature of Mandamus or any appropriate writ or order directing the 2nd Respondent, The Kerala Value Added Tax/Agricultural Income Tax and Sales Tax Appellate Tribunal (KVAT) Additional Bench, Kozhikode to expedite the processing of their appeal and stay petition.

The petitioner also sought to issue a Writ of Mandamus or any appropriate writ or order directing the 3rd Respondent, the Deputy Tahsildar to suspend the recovery proceedings initiated against them until the disposal of the appeal.

The petitioner also requested the court to halt the recovery proceedings and to waive the requirement for the translation of the vernacular document.

The respondent revenue, Assistant Commissioner, KVAT Additional Bench, Kozhikode, and Deputy Tahsildar were represented by Jasmine M. M.

The court noted that the petitioner failed to make a pre-deposit while filing the second appeal before the 2nd respondent.

The single bench of Justice Dinesh Kumar Singh directed the petitioner to deposit 20% of the disputed tax amount, as per the Assessment Order. The petitioner was given a grace period of fifteen days to make this deposit.

The court emphasised that if the petitioner complied and deposited 20% of the disputed tax amount within the specified timeframe, the Revenue Recovery notice would be kept in abeyance until the finalisation of the appeal by the 2nd respondent.

To Read the full text of the Order CLICK HERE

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