The Telangana high court granted relief to the National Remote Sensing Centre (NRSC) in a pending tax liability dispute.
While directing the tax authorities not to take any coercive steps against the institution, a division bench of chief justice Aparesh Kumar Singh and Justice P Sam Koshy directed the NRSC to deposit 10% of the assessed tax liability.
NRSC, based in Hyderabad, works under the dept of space, govt of India, and is responsible for remote sensing satellite data acquisition and processing, among its many other vital operations.
The NRSC approached the Telangana HC seeking to quash a GST order passed by tax authorities on Jan 22. In its petition, NRSC requested the court to declare the tax order issued by the authorities as arbitrary, illegal, and in violation of constitutional rights.
NRSC further urged the court to set aside the tax demand and suspend its implementation while the matter is under judicial consideration.
During the hearing, counsels from all parties, including the Central govt and the Central Board of Indirect Taxes and Customs, reached a consensus to dispose of the matter in line with an earlier high court order in a similar matter.
Accordingly, the court gave interim relief to the agency and allowed it to approach the relevant tribunal within three months from the date of its constitution. The high court further ordered that no coercive action be taken against the agency until the tribunal decides the second appeal and disposed of the matter.
Source #TOI
