IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 21ST JUNE 2011 / 31ST JYAISHTA 1933 WP(C).No. 16583 of 2011(W) -------------------------- PETITIONER(S): --------------- JYOTHY LABORATORIES LIMITED, KANDANASSERY.P.O, THRISSUR, REPRESENTED BY ITS SENIOR OFFICER (ACCOUNTS), - T.V.TILAKAN BY ADVS. SRI.P.RAGHUNATH SRI.PREMJIT NAGENDRAN RESPONDENT(S): ------------------------ 1. ASSISTANT COMMISSIONER (ASSESSMENT), COMMERCIAL TAXES, SPECIAL CIRCLE, THRISSUR - 680 004. 2. THE INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, THRISSUR - 680 004. 3. KERALA VALUE ADDED TAX ACT APPELLATE TRIBUNAL, ERNAKULAM - 15. R1 TO R3 BY GOVERNMENT PLEADER SHRI.V.K.SHAMSUDHIN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: krj WP(C).No. 16583 of 2011(W) APPENDIX PETITIONER'S EXHIBITS:- P1: COPY OF ASSESSMENT ORDER FOR NOV.2009 DATED 14.01.10. P2: COPY OF ASSESSMENT ORDER FOR DEC.2009 DATED 02.02.10. P3: COPY OF ORDER DT.06.04.11 IN KVATA 495/10 (NOVEMBER) AGAINST EXT.P1 ORDER. P4: COPY OF ORDER DT.06.04.11 IN KVATA 814/10 (DECEMBER) AGAINST EXT.P2 ORDER. P5: COPY OF APPEAL FILED AGAINST EXT.P1 ORDER. P6: COPY OF APPEAL FILED AGAINST EXT.P2 ORDER. P7: COPY OF STAY PETITION FILED ALONG WITH EXT.P5 APPEAL. P8: COPY OF STAY PETITION FILED ALONG WITH EXT.P6 APPEAL. RESPONDENT'S EXHIBITS:- 'NIL' //TRUE COPY// P.A. TO JUDGE C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.16583 of 2011 ------------------------------------------- Dated this the 21st day of June, 2011 J U D G M E N T ---------------------- Exts.P1 & P2 orders of assessments confirmed by the first appellate authority in Ext.P3 & P4 were challenged by the petitioner in further statutory appeals filed before the 3rd respondent as per Exts.P5 & P6. Along with the appeals Exts.P7 & P8 stay petitions were also filed. It is stated that the appeals as well as the interim applications are pending consideration and disposal before the 3rd respondent. 2. The dispute raised in the appeals solely pertains to rate of tax applicable to the products dealt with by the petitioner, namely 'Ujala Supreme' and 'Ujala Stiff & Shine'. Learned Government Pleader points out that, a clarification issued by the Commissioner of Commercial Taxes, in exercise of power under Section 94 of the Kerala Value Added Tax Act (KVAT Act), has already been upheld by the Division Bench of this court in an appeal (OTA) filed challenging such clarification. It is further submitted that a tax revision case filed against a different view taken by the State Appellate Tribunal has also been reversed recently, by a Division Bench. 3. On the other hand, learned counsel for the petitioner W.P.(C).16583/11 -2- submits that the decision of this Court with respect to the clarification issued by the Commissioner is now challenged before the Hon'ble Supreme Court in a Special Leave Petition. It is also stated that a Special Leave Petition is being filed against the decision of the tax revision case also. According to him the ultimate decision has to come from the Hon'ble Supreme Court regarding the rate of tax applicable. Under such premise he seeks stay of recovery steps, till the disposal of the appeals. It is pointed out by the learned Government Pleader that there is no stay granted by the Hon'ble Supreme Court and as per the legal position which now stands settled, the petitioner is liable for payment of the amounts as assessed. 3. Considering pendency of the appeals before the statutory authority, I am of the view that interest of justice will be served if it is directed for an expeditious disposal of the matter and to restrain the recovery steps till then, subject to conditions. Of course, the ultimate liability will depend upon the outcome of the matter which is now pending before the Hon'ble Supreme Court. 4. Under the above mentioned circumstances, the writ petition is disposed of directing the 3rd respondent to consider and dispose of Exts.P5 & P6 appeals after affording an opportunity of hearing to the petitioner as early as possible, at W.P.(C).16583/11 -3- any rate, within a period of two months from the date of receipt of a copy of this judgment. 5. Till such time the appeals are disposed of as directed above, recovery of amounts covered under Exts.P1 & P2 orders of assessments shall be kept in abeyance, subject to condition of the petitioner remitting 50% of the amounts due under the assessment and on furnishing Security Bond for the balance amount, within a period of three weeks from the date of receipt of a copy of this judgment. C.K.ABDUL REHIM, JUDGE. okb