Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2020 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 238 - HC - VAT and Sales TaxMaintainability of appeal - appeal dismissed arising out of stay order of appellate authority, without considering prima facie merits - grant of full protection (towards unpaid VAT dues) - rejection of books of accounts - HELD THAT:- It is well settled that while deciding the application for grant of stay the Appellate Authority or the Tribunal is bound to consider 'prima facie case' as pleaded by any assessee and the 'financial hardship', if pleaded by the assessee, while deciding stay application, it cannot refuse to exercise the discretion by refusing to consider prim facie case solely on the ground that any finding recorded at this stage may ultimately affect the outcome of the appeal. Needless to add that prima facie satisfaction which is liable to be recorded cannot have any effect on the final decision which is to be taken by the Appellate Authority as the 'prima facie' consideration, as the names suggest is only 'prima facie' and, ultimately, the appeal has to be decided on its own merits after hearing the parties. The Tribunal cannot escape or refuse to consider the prima facie case at the time of considering the stay application as it is well settled that the parameters for deciding the stay application include prima facie case and financial hardship. In the present case, the order of the Tribunal is ex facie erroneous, inasmuch as, it refuses even to consider prima facie case while deciding the stay application, thus, there are no hesitation in holding that the order of Tribunal is clearly contrary to the settled law and is liable to be set aside. The questions framed are answered in favour of the assessee and against the revenue.
|