THE KAPPUMTHALA SERVICE CO-OPERATIVE LTD. NO.K 142, vs. THE COMMISSIONER OF INCOME TAX,
What did the High Court hold?
The High Court, following a Division Bench judgment in W.A.No. 1529/2019 and subsequent similar cases, ordered that the appellate authority (1st respondent) shall ensure the final disposal of the petitioner's appeal (Ext.P2) after affording a reasonable opportunity of being heard, without undue delay. Crucially, the Court directed that until final orders are passed disposing of Ext.P2 appeal, all coercive steps for the enforcement of the assessment order impugned in the appeal shall be kept in abeyance. The reasoning is based on the principle that insistence on payment of a portion of the demanded amount as a condition for stay need not be insisted upon in such cases, and that interim arrangements pending disposal of statutory appeals are permissible. The ratio decidendi is that the appellate authority must decide the appeal expeditiously, and coercive recovery should be stayed until then, as per established precedents.
What were the facts?
The petitioner, The Kappumthala Service Co-operative Ltd., represented by its Secretary, filed a writ petition before the High Court of Kerala seeking a mandamus directing the Commissioner of Income Tax (Appeals) to consider its appeal (Ext.P2) on merits. The petitioner also sought a direction to restrain the respondents from initiating coercive proceedings for recovery of the impugned tax until an order was passed on the appeal. The petition was filed against the Commissioner of Income Tax (Appeals) and the Income Tax Officer. The assessment year(s) are not specified. The procedural history indicates that an appeal (Ext.P2) was filed before the first respondent.
What were the issues?
1. Whether the High Court should issue a writ of mandamus directing the appellate authority to consider the appeal on merits? (Question of law and procedure) 2. Whether coercive proceedings for recovery of impugned tax should be stayed pending the disposal of the statutory appeal? (Question of law and procedure) Assessee's Contentions: The petitioner contended that the appeal before the Commissioner of Income Tax (Appeals) should be considered on its merits. They also argued for a stay on coercive recovery proceedings until the appeal is decided. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue's counsel, Sri. Jose Joseph. However, the court's directions imply that the revenue would be bound by the interim orders.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT The prayers in the above Writ Petition (Civil) are as follows: (1) “Issue a writ of mandamus or other appropriate writ, order or direction to the 1st respondent to consider Ext.P2 appeal on merit and also restraining the respondent to consider Ext.P2 appeal on merit and also restraining the respondents from initiating coercive proceedings against the petitioner society till orders are passed in Ext.P2 appeal on merit. (2) Grant such other reliefs which this Honourable court just and proper in the circumstance of the case.”
Heard Sri. O.D.Sivadas, learned counsel appearing for the petitioner and Sri. Jose Joseph, learned Standing Counsel for the Income Tax Department appearing for the respondents.
In similar circumstances, a Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 has taken the view that the insistence for payment of a portion of the amount demanded, as a condition for grant of stay, need not be insisted in cases as in the instant one and that the Division Bench, for reasons stated therein, has ordered that it is for the appellate authority to take a decision on the statutory appeal at the earliest and that until the final decision is rendered by the appellate authority in the statutory appeal, coercive steps for recovery and collection of the impugned tax shall be kept in abeyance in the light of the dictum laid down by the Full Bench of this Court in Mavilayi Service Co-operative Service Bank Ltd., v. Commissioner of Income
WP(C).No.3146 OF 2020(P) 3 Tax, Calicut [2019 (2) KHC 287]. The Division Bench in the abovesaid judgment dated 1.7.2019 in W.A.No. 1529/2019 has also dealt with the reasons for taking such a view for making such an interim arrangement pending disposal of the main appeal by the statutory appellate authority concerned. The said decision of the Division Bench of this Court in W.A.No. 1529/2019 has been followed by this Court in a series of other cases as in the judgment dated 10.1.2020 in W.P.(C).No.523/2020. Accordingly, following the line of directions and orders already passed by the Division Bench of this Court in the judgment dated 1.7.2019 in W.A.No. 1529/2019 as well as various other judgments rendered by this Court, following the said directions and orders of the Division Bench in the matter of the interim arrangement till the disposal of the main statutory appeal, etc., following orders and directions are issued: It is ordered that the 1st respondent appellate authority shall ensure final disposal of Ext.P-2 appeal after affording reasonable opportunity of being heard to the petitioner without much delay and within a reasonable time limit that may be fixed appropriately by the said appellate authority. However, in the interest of justice it is ordered that until final orders are passed disposing of Ext.P-2 appeal, all coercive steps for the enforcement of the assessment order impugned in the abovesaid appeal shall be kept in abeyance. With these observations and directions, the Writ Petition (Civil) stands finally disposed of.
ALEXANDER THOMAS, JUDGE SKS
WP(C).No.3146 OF 2020(P) 4
Appendix — schedule of exhibits
Recent GST High Court judgments
Search GST case law →- K Madhusudan Reddy vs. The State Of Andhra PradeshAndhra Pradesh · 28 Oct 2026
- Sandeep Ranjan Rout vs. The Commissioner Of CT And GST, Odisha, KatakOrissa · 28 Oct 2026
- Gagan Bihari Rout@Gagan Rout vs. State Of OdishaOrissa · 28 Oct 2026
- Biswanath Rana vs. The Commissioner, CT And GST, Odisha, CuttackOrissa · 28 Oct 2026
- Sushama Mishra vs. The Commissioner Of CT And GST, Odisha, KatakOrissa · 28 Oct 2026
