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Monday 4 February 2013

An ad interim stay was granted in respect of demand raised in pursuance of Circular No. 967/01/2013-CX, dated 1-1-2013


[2013] 29 taxmann.com 427 (Andhra Pradesh)
HIGH COURT OF ANDHRA PRADESH
Ultratech Cement Ltd.
v.
Union of India*

L. NARASIMHA REDDY AND SANJAY KUMAR, JJ.
WPMP NO. 873 OF 2013
WP. NO. 730 OF 2013
JANUARY 9, 2013
Article 226 of the Constitution of India - Writ Petition - Maintainability of - Assessee filed a writ petition praying for stay of clarification issued vide Sl. No. 3 of Circular No. 967/01/2013-CX, dated 1-1-2013 and consequent Letter issued by Department pending disposal of writ - HELD : There would be interim stay of recovery of amount involved, till appellate authority disposes of application for stay - However, assessee shall abide by any order passed by appellate authority and pendency of this writ petition shall not be a ground to avoid such liability [Paras 1 & 2] [In favour of assessee]
Circulars & Notifications : Circular No. 967/1/2013, dated 1-1-2013
EDITOR'S NOTE

 1.  This judgment should not be treated as stay of operation of Circular No. 967/01/2013-CX, dated 1-1-2013. This judgment merely grants relief to the assessees herein and that too, only until disposal of the stay application filed by them before the concerned appellate authority.
 2.  So far as the validity of Circular No. 967/01/2013-CX, dated 1-1-2013 is concerned, the same is surely doubtful, as the circular is contrary to the law established by various judgments on the subject. Moreover, forcing recovery during pendency of stay application will add up to the burden of the Courts and the present petition is a glaring example thereof.
Lakshmi Kumaran for the PetitionerJalakam Sathyaram for the Respondent.
ORDER

There shall be interim stay of recovery of the amount involved, till the appellate authority disposes of the application for stay.
2. It is made clear that the petitioner shall be under obligation to abide by the order that may be passed by the appellate authority and the pendency of this writ petition shall not be treated as a factor to avoid the liability.
VINEET

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