IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 23RD NOVEMBER 2011 / 2ND AGRAHAYANA 1933 WP(C).No. 31118 of 2011(L) ---------------------------------------- PETITIONER(S): ----------------------- TRAVANCORE GOLD INDIA PVT.LTD., PAZHAVANGADI, THIRUVANANTHAPURAM-695 023, REPRESENTED BY ITS DIRECTOR. BY ADV. SRI.S.ANIL KUMAR (TRIVANDRUM) SRI.K.S.HARIHARAN NAIR SRI.K.UMAMAHESWAR RESPONDENT(S): -------------------------- 1. ASST.COMMISSIONER, COMMERCIAL TAXES, SPECIAL CIRCLE, THIRUVANANTHAPURAM-PIN-695 035. 2. KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ERNAKULAM, KOCHI-PIN- 682 015. BY GOVERNMENT PLEADER SMT.SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.31118/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE ORDER DATED 9/06/2011 OF THE 1ST RESPONDENT. P2 COPY OF THE APPEAL MEMORANDUM P3 COPY OF THE PETITION FOR STAY P4 COPY OF THE NOTICE DATED 8/11/2011 OF THE 1ST RESPONDENT. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S.SIRI JAGAN, J. ================== W.P.(C).No. 31118 of 2011 ================== Dated this the 23rd day of November, 2011 J U D G M E N T The petitioner is a dealer in gold and other jewellery and, is a registered dealer under the Kerala Value Added Tax Act. The petitioner availed of the benefit of Section 8 of the Act for paying tax at compounded rate, for which permission was granted by the 1st respondent. But the 1st respondent, by Ext.P1 order, cancelled the permission already granted on the ground that the turnover of the petitioner during 2010-2011 was more than double the turnover for the previous year. According to the petitioner, even though sub clause (ii) of clause (f) permits cancellation of permission already granted, it can be only in the case of increase in the stock held and not in the case of increase in turnover. Therefore, the petitioner filed Ext.P2 appeal before the 2nd respondent Appellate Tribunal along with Ext.P3 application for stay, against Ext.P1 order. Those are pending. In the meanwhile, Ext.P4 pre-assessment notice has been issued to the petitioner proposing to assess the petitioner on the turnover. It is under the above circumstances, the petitioner has filed this writ petition seeking the following reliefs; “(i) issue a writ of mandamus or other appropriate writ or orders directing the 2nd respondent to dispose of Ext.P2 appeal and Ext.P3 application at the earliest; (ii) issue a writ of prohibition or other appropriate writ or orders restraining the 1st respondent from giving effect to the proposals contained in Ext.P4 notice till the 2nd respondent w.p.c.31118/11 - : 2 :- disposes of Ext.P2 appeal; (iii) issue a writ of mandamus or other appropriate writ or orders directing the 1st respondent to accept the returns filed by the petitioner and the payment of tax in accordance with the provisions of section 8 of the Act till Ext.P2 appeal is disposed of.” 2. I have heard the learned Government Pleader also. 3. I am of opinion that since the petitioner has already filed an appeal and stay application against the order cancelling permission to pay tax at compounded rate, before at least the stay application is considered, further action pursuant to the cancellation should not be proceeded with. Therefore, this writ petition is disposed of with the following directions: The 2nd respondent shall consider and pass orders on Ext.P3 application for stay, as expeditiously as possible, at any rate, within one month from the date of receipt of a certified copy of this judgment. Till then, further proceedings pursuant to Ext.P4 shall be kept in abeyance. If the 2nd respondent allows Ext.P3 petition for stay and grants stay, further proceedings pursuant to Ext.P4 shall only be in accordance with the orders of the Tribunal. But in such an event, the petitioner shall continue to pay the amount equivalent to the compounded rate as tax. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge w.p.c.31118/11 - : 3 :-