Non-issuance of Rectification Orders by Intelligence wing of VAT Dept.: Kerala HC stays Coercive Action [Read Order]

The Kerala High Court observed that the Intelligence Wing of the VAT Department is not issuing rectification orders, leading to a stay on coercive actions.

The issue to be decided was whether the writ petition, filed can be granted to direct the second respondent to consider and dispose of copy of representation submitted by the petitioner before the Respondents DTD letter expeditiously.

The petitioner contends a significant delay in receiving orders after objecting to the Section 66 notice under the KVAT Act. Simultaneously, a coercive notice from the third respondent prompts the petitioner’s plea.

Having submitted a deferral request, the petitioner, apprehensive of coercive measures, seeks judicial intervention through a writ petition. This case emphasizes bureaucratic challenges, urging timely adjudication and transparency in tax matters.

Harisankar V. Menon, the learned counsel appearing for the petitioner, after a thorough review of the submitted arguments and supporting documents, and acknowledging the petitioner’s earlier submission of copy of reply filed by the petitioner objection to the first respondent, finds it fitting to issue a directive. The first respondent’s counsel is instructed to promptly assess and address the copy of reply filed by the petitioner objection before proceeding with the enforcement of copy of notice issued by the 1st respondent and copy of notice issued by the 3^rd respondent.

Jasmine M, Government Pleader appearing for the respondents, argued that counsels 1 and 2 are mandated to reach a resolution on the petitioner’s copy of reply filed by the petitioner objection linked to copy of notice issued by the 1^st respondent notice. Meanwhile, all subsequent actions related to copy of notice issued by the 1st respondent and copy of notice issued by the 3^rd respondent  are to be temporarily deferred until a decision is made on the copy of reply filed by the petitioner objection.

The single bench of the Kerala High Court, comprising Justice C.S. Dias, directed that the concerned authority in the Intelligence Wing of Value Added Tax (KVAT) Department shall pass orders on copy of reply filed by the petitioner after affording the petitioner an opportunity of being heard.

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