Case Law Details
Cherakulam Towers & Highway Resort Vs Assistant Commissioner (Kerala High Court)
Introduction: In a recent judgment by the Kerala High Court, Cherakulam Towers & Highway Resort sought relief through a writ petition under Article 226 of the Constitution of India. The case revolves around the immediate deposit of 20% of the disputed tax to halt revenue recovery in their Value Added Tax (VAT) appeal. The petition raises concerns related to the delay in the disposition of a stay petition and an appeal petition, as well as the suspension of recovery proceedings.
Detailed Analysis:
1. Background of the Case: Cherakulam Towers & Highway Resort initiated a writ petition under Article 226 of the Indian Constitution to seek specific reliefs. These included urging the 2nd Respondent to promptly pass orders on their stay petition (Exhibit-P4) and their appeal petition (Exhibit-P3). The petitioner also requested the court to direct the 3rd Respondent to suspend recovery proceedings in connection with the Revenue Recovery notice (Exhibit-P5) until the finalization of the appeal. The petitioner further sought to dispense with the filing of a translation of the vernacular document.
2. Lack of Pre-Deposit: The crucial point of contention in the case was the absence of a pre-deposit by the petitioner while filing the second appeal before the 2nd respondent. Typically, a pre-deposit is a monetary amount that an appellant is required to deposit as a condition for pursuing an appeal.
3. Agreement on Pre-Deposit: During the proceedings, the petitioner’s counsel agreed that the petitioner would deposit 20% of the disputed tax amount within a specific timeframe. The agreement to make the deposit was a significant turning point in the case.
4. Court’s Decision: As a result of the agreement, the Kerala High Court disposed of the writ petition with a clear directive. The petitioner was instructed to deposit 20% of the disputed tax amount according to the Assessment Order (Ext.P1) dated May 30, 2019. The court specified that if the petitioner fulfilled this deposit requirement within 15 days, the Revenue Recovery notice (Ext.P5) would be suspended until the 2nd respondent finalized the appeal.
Conclusion: The Kerala High Court’s decision in this case demonstrates the importance of adhering to pre-deposit requirements in legal proceedings. By agreeing to deposit 20% of the disputed tax amount, the petitioner was able to halt revenue recovery while their appeal awaited a final decision by the 2nd respondent. This case serves as a reminder of the legal procedures and requirements that appellants must follow in tax-related appeals, particularly in the context of VAT appeals.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petition under Article 226 of the Constitution of India has been filed seeking the following reliefs:
“(i) Issue a Writ in the nature of Mandamus or any other appropriate writ or order directing the 2nd Respondent to pass orders in Exhibit-P4 stay petition expeditiously within a time limit fixed by this Hon’ble Court.
(ii) Issue a Writ in the nature of Mandamus or any other appropriate writ or order directing the 2nd Respondent to pass orders in Exhibit-P3 appeal petition expeditiously within a time limit fixed by this Hon’ble Court.
(iii) Issue a Writ in the nature of Mandamus or any other appropriate writ or order directing the 3rd Respondent to keep in abeyance the recovery proceedings pursuant to Exhibit-P5 notice till the disposal of Exhibit-P3 appeal.
(iv) To dispense the filing of translation of the vernacular document.
And
(v) Pass such other orders as this Hon’ble Court deems justified in the facts and circumstances of the case.”
2. Admittedly, the petitioner has not made any pre-deposit while filing the second appeal before the 2nd respondent.
3. The learned Counsel for the petitioner submits that the petitioner will deposit 20% of the disputed tax amount within a period of fifteen days.
4. The present writ petition is therefore disposed of with a direction to the petitioner to deposit 20% of the disputed tax amount as per Ext.P1 Assessment Order dated 30.05.2019. If the petitioner makes the deposit of 20% of the disputed tax amount within a period of 15 days, Ext.P5 Revenue Recovery notice shall be kept in abeyance till the finalisation of the appeal by the 2nd respondent.
