Refund Dues Cannot Be Adjusted Against Demand When There is Stay on Account of Provision U/S 60(1A) of KVAT Act: Kerala HC

The Kerala High Court ruled that refund dues cannot be adjusted against outstanding demands if there is a stay on the account under Section 60(1A) of the Kerala Value Added Tax (KVAT) Act. The court emphasized that such adjustments violate the stay order, which provides temporary relief to the taxpayer. This decision reinforces the importance of respecting judicial orders and ensures that taxpayers are not unfairly disadvantaged during the pendency of their appeals. It underscores the principle of fair treatment in tax administration.