In a recent case, the Kerala High Court was allowed to pay 20 % of the total tax due as value-added tax (VAT) Appeal was stayed until depositing the amount.
Shri P N Shanavas, the petitioner impugning the conditional stay order dated 31.7.2023, granted by the Kerala Value Added Tax Appellate Tribunal, Ernakulam. The petitioner filed a second appeal before the Tribunal against the order passed by the firstappellate authority dismissing the appeal in respect of the financial year 2016-17. As per the assessment order completed under Section 25(1) ofthe Kerala Value Added Tax Act, 2003, dated 23.9.2021, the tax demand has been raised for Rs.2,15,76,623/-, along with interest of Rs.1,16,51,376/-. This assessment order wasaffirmed by the first appellate authority.
The appellate Tribunal upheld the impugned assessment order on the condition that the petitioner deposit 20% of the total tax demand and executea single bond for the balance amount before the assessing authority within one month from the date of receipt of the order. Counsel for the petitioner submitted that the tax demanded is huge and the petitioner is not in a position to deposit 20% of the total tax demand in one go and prays that the Court may grant the petitioner a few instalments for depositing the 20% of the total tax demand.
A single bench of Justice Dinesh Kumar Singh gave liberty to the petitioner to pay 20% of the total tax demand in three equal monthly instalments, spread over three succeeding months, the first of which should be paid on or before 1.12.2023 and the remaining two instalments on or before 7th of two succeeding months.
Further held that “in case the petitioner fails to deposit the first instalment or any subsequent instalments as above, it would be deemed that there is no interim order staying the demand and the authority may proceed to recover the amount, by law.”
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