The Supreme Court put a stay on the general orders passed by the High Courts of Allahabad and Kerala which restrained all recovery proceedings by tax authorities under State and Centre and by Banks and other Financial Institutions until 6th April 2020. Supreme Court passed the stay order on the petition filed by the Central Government against the HC orders.
The Government is conscious of the issue of Coronavirus and Centre is coming up mechanism to address the issue without causing hardship in the present circumstances.
“The impugned order of the High Court will incentivize people to either delay payment of taxes or not pay any taxes at all which fall due, without facing any consequences in light of directions to defer recovery proceedings.
This would lead to a devastating consequences for the country’s financial system wherein even those who are able to pay and are not affected by Corona Virus.
Due to serious threat presently to the society in the country due to pandemic disease of Corona Virus(COVID-19), it has become necessary to issue directions to the State Government to issue necessary circulars to the various authorities including the District Magistrates of every district of the State and other Government Agencies and authorities not to take coercive measures or any exercise against any individual or body of individuals which may force them to approach the Courts for legal remedies and also to avoid any public gathering pursuant to any such proceedings like auction etc”.