IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 7TH JANUARY 2008 / 17TH POUSHA 1929 OP.No. 17597 of 2001(T) ----------------------- PETITIONER: ------------ THE CHEMICAL ENGINEERING CORPORATION (P) LTD., MARKET ROAD, ERNAKULAM. REPRESENTED BY ITS BRANCH MANAGER S.U.JAYARAM. BY ADV. SMT.S.K.DEVI SRI.DEEPSUR D.JAYAN RESPONDENTS: ------------- 1. THE ADDL.SALES TAX OFFICER-II DEPT.OF COMMERCIAL TAXES, II CIRCLE, ERNAKULAM. 2. THE COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM. 3. THE DEPUTY TAHSILDAR (RR), ERNAKULAM. BY GOVERNMENT PLEADER, SMT.SMITHA SUKUMARAN THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 07/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON C.M.P.NO.28097/2001 IN O.P.NO.17597/2001 CLOSED. SD/- C.N.RAMACHANDRAN NAIR, JUDGE 07/01/2008 APPENDIX PETITIONER'S EXTS: EXT.P1 TRUE COPY OF ORDER NO.23201313/97-98 DATED 30/9/99 ISSUED BY THE 1ST RESPONDENT. EXT.P2 TRUE COPY OF ORDER NO.ST RP 258 & 259/2000 DATED 19/6/2000 ISSUED BY DEPUTY COMMISSIONER, ERNAKULAM. EXT.P3 TRUE COPY OF ORDER NO.STRP 128/2000 (R1-38150/2000/DATED 19/5/2001 ISSUED BY THE 2ND RESPONDENT. \\TRUE COPY// C.N.RAMACHANDRAN NAIR, J. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O.P.No. 17597 of 2001 (T) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Dated this the 7th day of January, 2008 J U D G M E N T The petitioner's challenge is against levy of penalty, under Section 45AA of the Kerala Sales Tax Act, for the year 1997-98. Counsel for the petitioner contended that non payment of tax was not deliberate because the petitioner was successfully contesting demanded tax in appeals. However, Government Pleader, Smt.Smitha Sukumaran submitted that penalty was levied on account of chronic default. Even at this stage, it is not known whether the tax with interest is paid by the petitioner and whether the tax demand is sustained by the tribunal. However, it is stated in the O.P that appeal against assessment is pending in tribunal for 1997-98. In the circumstances, I direct the first respondent to verify the ultimate demand of tax sustained by the Tribunal and if petitioner already remitted the entire tax with interest under Section 23(3) of the K.G.S.T Act from the date of original demand, penalty levied under Section 45AA of the K.G.S.T. Act shall stand O.P.No.17597 of 2001 (T) -: 2 :- reduced to Rs.25,000/- (Rupees twenty-five thousand only). However, if the petitioner has not so far remitted the sustained demand with interest, full penalty will stand sustained. O.P is disposed of as above. C.N.RAMACHANDRAN NAIR, Judge ms