IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 9TH SEPTEMBER 2010 / 18TH BHADRA 1932 WP(C).No. 28066 of 2010(G) -------------------------- PETITIONER(S): ---------------------- M/S.GASHA STEELS PVT.LTD NIDA, KANJIKODE, PALAKKAD REPRESENTED BY ITS DIRECTOR, SMT.P.T.AYSHA. BY ADVS. SRI.K.SRIKUMAR SRI.K.J.CHERRY BABU SRI.K.MANOJ CHANDRAN RESPONDENT(S): ------------------------ 1. THE INTELLIGENCE OFFICER, SQUAD NO.1, DEPARTMENT OF COMMERCIAL TAXES KOTTAYAM. 2. THE SALES TAX APPELLATE TRIBUNAL ADDL.BENCH, KOTTAYAM REPRESENTED BY ITS ASSISTANT SECRETARY. 3. THE DEPUTY COMMISSIONER (APPEALS) DEPARTMENT OF COMMERCIAL TAX, KOTTAYAM. 4. THE INSPECTING ASST.COMMISSIONER DEPARTMENT OF COMMERCIAL TAXES, PALAKKAD DISTRICT. GOVERNMENT PLEADER MR.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: jvt C.K.ABDUL REHIM, J. ----------------------------- W.P.(C)No.28066 of 2010 ----------------------------------- Dated this the 9th day of September 2010 J U D G M E N T Petitioner is approaching this Court aggrieved by Ext.P2 order through which penalty was imposed on them, under Section 45A of the KGST Act, which was subsequently confirmed in appeal under Ext.P7 appellate order. On an earlier occasion the order imposing penalty was challenged in a writ petition filed before this Court. In Ext.P3 judgment, this Court observed that the contentions of the petitioner is that the penalty proceedings was initiated at a highly belated stage and hence the same is not sustainable in view of the decision of the Honourable Apex Court in State of Punjab and Others v. Bhatinda District Coop. Milk P. Union Ltd. [2007(10) VST 180 W.P.(C)No.28066 of 2010 -: 2 :- (SC)]. However, the petitioner was relegated to the appellate remedy. Thereafter when recovery steps were pursued during pendency of the statutory appeal, the petitioner again approached this Court. In Ext.P6 judgment, this Court directed the Appellate Authority to consider and pass final orders on the appeals within a time frame and conditional stay was granted directing the petitioner to make deposit of an amount of Rs.20 lakhs. Ext.P7 is the order passed by the First Appellate Authority. I notice that after elaborative narrations of the contentions raised by both sides, the appellate authority had not mentioned any of its findings based on such contentions. Only a highly cryptic finding is reflected in the order of the Appellate Authority. The appellate order is totally lacking discussions on merits of the rival contentions. On the other hand, it is only observed that, on a scrutiny of the records it become clear that the company was not keeping proper books of account and that there was purchase suppression W.P.(C)No.28066 of 2010 -: 3 :- of furnace oil and M.S.Ingot/billets and also sales suppression of MS Roll, MS Scrap etc. 2. On a prima facie appreciation it is evident that the order of the Appellate Authority is highly cryptic and non- speaking. No proper application of mind is reflected in the order. However, I am not expressing any final opinion on the merits of the case since the petitioner had already approached the 2nd respondent Tribunal by filing Exts.P8 and P9 second appeals. Along with the appeals, the petitioner had also filed applications seeking stay. It is submitted that the appeals as well as the stay applications are pending consideration and disposal before the 2nd respondent Tribunal. Grievance of the petitioner is that coercive steps of recovery is now being pursued on issuing Ext.P12 notice. Hence the petitioner is seeking direction to kept the recovery steps in abeyance till the disposal of the 2nd appeals. 3. Having considered facts and circumstances of the W.P.(C)No.28066 of 2010 -: 4 :- case and also considering the fact that the petitioner had already complied with the condition stipulated by this Court during first appellate stage, I am of the opinion that the writ petition can be disposed of directing the 2nd respondent to have an early disposal of the appeal. 4. Accordingly, the 2nd respondent Tribunal is directed to consider and pass orders on Exts.P8 and P9 appeals after affording an opportunity of hearing to the petitioner, as early as possible, at any rate within a period of two months from the date of receipt of a copy of this judgment. It is undertaken on behalf of the petitioner's that they will co-operate with expeditious disposal of the appeals and that they will not seek any adjournments when the matter is posted for hearing. 5. Till such time, orders are passed on the appeals by 2nd respondent Tribunal in compliance with the directions issued as above, realization of balance amounts covered under Ext.P2 order shall be kept in abeyance, on W.P.(C)No.28066 of 2010 -: 5 :- condition of the petitioner furnishing security bond for the entire balance amount. 6. Petitioner will produce a copy of this judgment before the 2nd respondent. Writ petition is disposed of as above. C.K.ABDUL REHIM, JUDGE. Jvt