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Judgment
Heard the learned Counsel for the petitioner and the learned Government Advocate.
While admitting the appeals filed by the petitioner, the Karnataka Appellate Tribunal, Bangalore had passed the interim order of stay of the assessment orders subject to two conditions, viz.:
(i) That the appellant therein should deposit 50% of the disputed tax liability;
(ii) The appellants shall furnish Bank guarantee to the remaining 50% of the disputed liability.
It is not in dispute that the petitioner has fulfilled both the conditions. Thus the interim order granted by the Karnataka Appellate Tribunal continued for 180 days as per the 2nd proviso to Section 22(5) of the Karnataka Sales Tax Act, 1957. Since the Tribunal did not have jurisdiction to continue the interim order for more than 180 days, the interim order was not continued. Thereafter the recovery notice as per Annexure-C, dated 12-9-2006 is issued by the 3rd respondent to the petitioner. The said notice, Annexure-C is called in question in this writ petition.
The interim order of stay was granted by the Karnataka Appellate Tribunal in S.T.A. Nos. 843 to 850 of 2005 on 9-11-2005. In view of the compliance of the conditions imposed by the Karnataka Appellate Tribunal, the interim order was continued till 180 days. The records disclose that in the meanwhile, the Karnataka Appellate Tribunal had called for records from the original authority. Though the matter was adjourned on 10 occasions, the records are not sent by the original authority to Karnataka Appellate Tribunal. Even when the matter was posted recently, i.e., on 11-9-2006, the records were not received. The aforesaid facts make it clear that the matter was being adjourned for non-receipt of the records and not because of the fault of the petitioner. Hence, the petitioner cannot be made to suffer without any fault on his part. In view of the same, the recovery notice Annexure-C is liable to be suspended during the pendency of the appeals before the Karnataka Appellate Tribunal. Hence, the following order is made:
The operation of the notice dated 12-9-2006 vide Annexure-C issued by the 3rd respondent is suspended during the pendency of the S.T.A. Nos. 843 to 850 of 2005 before the Karnataka Appellate Tribunal, Bangalore.
Writ petition is disposed of accordingly.