With the Centre pleading that it would have “devastating consequences” for the economy, the Supreme Court on Friday stayed two orders passed by the Kerala and Allahabad high courts, which had earlier restrained the Centre and the state governments from initiating tax recovery proceedings in view of the ongoing coronavirus crisis in the country, till April 6.
The Centre also pleaded that courts should not interfere in such tax-related matters as the same is within the executive domain.
A bench headed by Justice A.M. Khanwilkar stayed the orders after solicitor general Tushar Mehta appearing for the Union government pleaded that it would cause severe financial troubles for the Centre and the states, although the government was conscious there should be no inconvenience to the people in general over the virus crisis.
The two high courts on March 19 directed the authorities not to levy taxes and recover bank dues from people till April 6 amid the coronavirus crisis. The courts were dealing with the petitions of some private industrial/corporate houses, pleading to defer the tax recovery proceedings.
The apex court, however, recorded an undertaking from the solicitor general that the Centre was conscious of the difficulty faced by the people and would itself evolve a proper mechanism without causing any hardship to anyone.
Mehta while giving the undertaking submitted that people can make payment online and there was no need for the two high courts to pass such orders.
Those who are volunteering to pay taxes should not be stopped, he told the court during his brief submission.