KERALA STATE BEVERAGES (MANUFACTURING AND MARKETING) CORPORATION LTD vs. ASSISTANT COMMISSIONER OF INCOME TAX

WP(C)/7284/2020HC KeralaKLHC01019156202010 March 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petitions with a direction to the 2nd respondent (Commissioner of Income Tax (Appeals)) to consider the prayer for interim stay in the pending appeals within a period of one month from the date of receipt of a copy of the judgment. The Court also directed that no coercive measures shall be taken against the petitioner until such time as the stay application is disposed of. It was clarified that any interim stay granted would be only until the disposal of the application for stay. The High Court did not decide the merits of the appeals or the stay applications themselves, but rather directed their expeditious consideration. The principle established is that in cases where appeals and stay petitions are pending, and there is a threat of coercive recovery, the appellate authority should be directed to dispose of the stay applications within a stipulated timeframe to prevent undue hardship to the assessee.

What were the facts?

The petitioner, Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd (Bevco), filed two writ petitions challenging assessment orders dated February 5, 2020, and December 27, 2019. Bevco had preferred appeals and stay petitions against these orders, which were pending consideration. The assessment years involved were 2017-18 and 2018-19. Bevco contended that the demand for these years represented 20% and 30% of the total demand, as per an Office Memorandum. The petitioner sought a direction for redressal of their grievance due to the threat of coercive recovery measures.

What were the issues?

1. Whether the High Court should issue a direction for the consideration of interim stay applications pending appeals against assessment orders, and if so, what should be the timeline and conditions? Assessee's Contentions: - The petitioner argued that for a particular assessment year, an appeal (ITA 313/19) was already pending before the Division Bench of the High Court. However, for different assessment years, they had to avail the remedy of appeal as orders were being passed from time to time. - The petitioner sought redressal of their grievance due to the threat of coercive measures. Revenue's Contentions: - The judgment does not record any specific contentions made by the revenue.

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP(C).No.7269 OF 2020

WP(C).7284/2020

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 10TH DAY OF MARCH 2020 / 20TH PHALGUNA, 1941 WP(C).No.7269 OF 2020(G) PETITIONER: KERALA STATE BEVERAGES (MANUFACURING AND MARKETING) CORPORATION LTD BEVCO TOWER, CANTONMENT HOUSE ROAD, PALAYAM ,VIKAS BHAVAN.P.O, THIRUVANANTHAPURAM-695033, REPRESENTED BY ITS COMPANY SECRETARY MR.M.JOHN JOSEPH. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SMT. ARYA ANIL SHRI.GOKULRAJ L. S.P.SRI HARINI RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1),THIRUVANANTHAPURAM-695033. 2 COMMISSIONE OF INCOME TAX(APPEALS), THIRUVANANTHAPURAM-695033. SRI CHRISTOPHER ABRAHAM SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.03.2020, ALONG WITH WP(C).7284/2020(I), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).Nos.7269/2020 & 7284/2020 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL TUESDAY, THE 10TH DAY OF MARCH 2020 / 20TH PHALGUNA, 1941 WP(C).No.7284 OF 2020(I) PETITIONER: KERALA STATE BEVERAGES (MANUFACTURING AND MARKETING) CORPORATION LTD BEVCO TOWER, CANTONMENT HOUSE ROAD, PALAYAM, VIKAS BHAVAN, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS COMPANY SECRETARY MR. MR.JOHN JOSEPH BY ADVS. SRI.ANIL D. NAIR SRI.SREEJITH R.NAIR SMT. ARYA ANIL SHRI.GOKULRAJ L. SMT.SRI HARINI S.P. RESPONDENTS: 1 ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), THIRUVANANTHAPURAM-695 033 2 COMMISSIONER OF INCOME TAX (APPEALS) THIRUVANANTHAPURAM-695 033 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.03.2020, ALONG WITH WP(C).7269/2020(G), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).Nos.7269/2020 & 7284/2020 3

JUDGMENT This order shall dispose of two writ petitions wherein the petitioner, against the assessment orders dated 05.02.2020 and 27.12.2019, preferred appeals and stay petitions Exts.P2 and P3, which are pending consideration. The learned counsel appearing on behalf of the petitioner submits that the assessment year 2017-18 and 2018-19 are 20% and 30% of demand in terms of the directions of the Office Memorandum. The petitioner’s grievance can be redressed in case an appropriate direction is issued as the threat of the coercive measures is writ large. Heard learned counsel for the parties and noticed the contentions of the counsel and pleadings. The learned counsel for the petitioner submitted that for a particular assessment year an appeal No.ITA 313/19 is filed before the Division Bench of this Court and pending for judgment. But for different assessment year has to avail the remedy of appeal as the orders from time to time are being passed.

Keeping in view such situation, I dispose of this writ petition with a direction to the 2nd respondent to consider the prayer for interim stay in pending appeal within a period of one month from the date of receipt of a copy of this judgment. Till such time, no coercive measures shall be taken. It is made clear that interim stay is only till the disposal of the application for stay. AMIT RAWAL nak JUDGE

Appendix — schedule of exhibits

APPENDIX OF WP(C) 7269/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 05.02.2020. EXHIBIT P2 TRUE COPY OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT EXHIBIT P4 TRUE COPY OF THE INTERIM ORDER GRANTED BY THIS HON'BLE COURT IN ITA NO.313 OF 2019. WP(C).Nos.7269/2020 & 7284/2020 6 APPENDIX OF WP(C) 7284/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 27.12.2019 EXHIBIT P2 TRUE COPY OF THE APPEAL FILED BEFORE THE 2ND RESPONDENT EXHIBIT P3 TRUE COPY OF THE STAY PETITION FILED BEFORE THE 2ND RESPONDENT EXHIBIT P4 TRUE COPY OF THE INTERIM ORDER GRANTED BY THIS HON'BLE COURT IN ITA NO.313 OF 2019 //TRUE COPY// P.A TO JUDGE

Recent GST High Court judgments

Search GST case law →