The Kerala High Court has made a significant decision regarding the powers of the jurisdictional appellate Commissioner to grant stay of demand. The court has ruled that the introduction of the faceless scheme has stripped the authority of the power to grant stay, and thus directed the National Faceless Appeal Centre to provide a link for filing the petition. In the case at hand, the petitioner, Thuruthiyath Suma, had challenged an assessment order through an appeal before the National Faceless Appeal Centre, but did not file any stay petition along with the appeal. As a result, the petitioner received a notice of demand and subsequently filed a stay application before the jurisdictional appellate Commissioner. However, the department argued that the petitioner must file the stay petition before the National Faceless Appeal Centre, and not before the jurisdictional Appellate Commissioner, who no longer has jurisdiction over such petitions.

In granting an interim relief to the petitioner, Justice Gopinath P has emphasized the importance of complying with the new faceless scheme and directed the National Faceless Appeal Centre to provide a link to the petitioner for filing a stay petition within a period of two weeks from the date of receipt of a certified copy of the judgment. If the petitioner files a stay petition within ten days of receiving the link, further coercive steps against the petitioner to recover the amounts due under Ext.P1 shall be kept in abeyance until the stay petition is decided by the National Faceless Appeal Centre. This decision is significant in clarifying the procedures that taxpayers must follow under the new faceless scheme and underscores the importance of complying with the new system to avoid any legal consequences.

In conclusion, the Kerala High Court’s decision clarifying the powers of the jurisdictional appellate Commissioner under the new faceless scheme is a significant development in Indian tax law. The decision highlights the need for taxpayers to understand and comply with the new system to avoid legal complications. The direction to provide a link for filing stay petitions with the National Faceless Appeal Centre underscores the importance of utilizing the new system’s procedures for efficient dispute resolution. Overall, this decision is an important development in Indian tax law that clarifies the legal procedures for filing appeals and stay petitions under the new faceless scheme.

-Navneet Shukla