LI Network
Published on: October 8, 2023 at 19:35 IST
The Kerala High Court has recently approved a request by Pyramid Architects and Engineers, the petitioner, to make staggered payments for the outstanding tax amount determined by the assessing authority.
In a decision delivered by a Division Bench comprising Justice A. Muhamed Mustaque and Justice Shoba Annamma Eapen, the court stated that it found no grounds to interfere with the order specified in Ext.P6.
It noted that the Appellate Tribunal had provided ample justification when issuing Ext.P6. However, the court believed that the petitioner should be granted the option of making installment payments to settle the amount specified in Ext.P6.
Case Background:
The petitioner had challenged a conditional order issued by the Kerala Value Added Tax Appellate Tribunal in Kozhikode. This order directed the petitioner to pay 10% of the outstanding tax for the years 2014-15 and 2015-16 and furnish a simple bond for the remaining amount to the satisfaction of the assessing authority within one month from the date of receiving the order.
The petitioner argued that this conditional order was unduly burdensome, and they lacked the financial means to comply with it. They also noted that when they initially appealed, they had already deposited 20% of the demanded amount. Therefore, they sought to have the newly imposed condition set aside.
On the other hand, the counsel representing the Department argued that since the petitioner had lost the case in the first appeal, the Appellate Tribunal’s decision to require the petitioner to pay only 10% of the outstanding tax was reasonable.
After considering both sides, the Bench determined that there was no valid reason to intervene in the order, as the Appellate Tribunal had provided sufficient rationale for issuing the conditional order.
However, the Bench did grant the petitioner the option to pay the outstanding tax in monthly installments. Accordingly, the High Court directed the petitioner to make three equal monthly payments to settle the amount specified in the conditional order.
Furthermore, the High Court emphasized that any coercive actions against the taxpayer would be temporarily suspended, allowing the taxpayer to repay the amount in accordance with the court’s directive.
