AHALIA INTERNATIONAL FOUNDATION Vs. THE ASSISTANT COMMISSIONER (ASSESSMENT)

JUDGEMENT

(1.) Petitioner challenges Ext.P6 to the extent the petitioner is called upon to remit 30% of the demand as a condition for stay in respect of assessment year 2010 -2011 and furnish security for the balance amount.

(2.) The main contention urged by the petitioner is that the service given in hospital cannot be assessed to tax under the Kerala Value Added Tax Act, 2003. The said issue is pending before the Division Bench of this Court in W.A.No.1896/2012 and connected cases and the interim order of stay granted in those cases have been extended until further orders. Further, it is contended that none of the contentions urged by the petitioner has been properly considered by the appellate authority while imposing the aforesaid conditions. According to the petitioner, absolute stay order has been granted in the matter.

(3.) As far as the matter pending before the Division Bench is concerned, the issue is regarding liability of the hospital to pay tax on turn over. However, this is an instance where assessment order had already been passed by the assessing authority and the matter is pending in appeal. In the appeal, the appellate authority, as a condition for stay, has imposed such condition. The question to be looked into is whether the appellate authority has considered the application for stay with due application of mind. Perusal of Ext.P6 order would show that the appellate authority had considered the matter, after taking on record the contentions urged and the following had been stated: