IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH FRIDAY, THE 12TH DECEMBER 2008 / 21ST AGRAHAYANA 1930 WP(C).No. 36521 of 2008(W) -------------------------- PETITIONER(S): ---------------------- M.SUBAIR, KREEM CORNER, MULLACKAL, ALAPPUZHA. BY ADV. SMT.S.K.DEVI SRI.SANTHOSH P.ABRAHAM RESPONDENT(S): ----------------------- 1. THE COMMERCIAL TAX OFFICER, DEPT. OF COMMERCIAL TAXES, IIND CIRCLE, ALAPPUZHA. 2. THE COMMERCIAL TAX OFFICER (AA), COMMERCIAL TAXES, ALAPPUZHA. 3. THE KVAT APPELLATE TRIBUNAL PRINCIPAL BENCH, ERNAKULAM. 4. THE DEPUTY COMMISSIONER COMMERCIAL TAXES, ALAPPUZHA. BY GOVT. PLEADER SRI. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/12/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH, J. - - - - - - - - - - - - - - - - - - - - - - - - - WP.(C) No.36521 of 2008 - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 12th day of December, 2008 JUDGMENT Petitioner has suffered an assessment in the year 2006 and appeal carried proved unsuccessful by the rejection of the appeal in the year 2007. Petitioner has preferred Ext.P4 second appeal, in the same he moved an application for stay. By Ext.P6, the stay application has been disposed of directing deposit of 50% of the amount demanded. Petitioner has also filed Ext.P5 application invoking Section 20A of the KVAT Act. Learned counsel for the petitioner submits that Ext.P6 is illegal and despite the fact that her application seeking compounding is pending, which, if allowed, the petitioner will be liable to pay tax only at .5%, the petitioner has been called upon to pay tax at the rate of 12.5%. It is further contended that a decision on Ext.P5 may not be taken prior to the decision in Ext.P4 appeal. 2. Learned Government Pleader points out that this is a case, as already noted, the assessment has been completed in 2006, the first appeal stood dismissed in 2007. 3. Having regard to the totality of facts, I feel that interests of justice will be served if the petitioner is called upon to pay an amount representing 40% of the tax demanded and direct that a decision will not be WPC.36521/2008. 2 taken on Ext.P5 till Ext.P4 is disposed of. Accordingly, Ext.P6 is modified and it is ordered that the petitioner needs to pay only 40% of the amount demanded and furnishes security for the balance as ordered. The condition in Ext.P6 as modified in this judgment will be complied with by 31.12.2008. There will be a further direction not to pass orders on Ext.P5 before taking a decision on Ext.P4 appeal. The writ petition is disposed of as above. (K.M. JOSEPH, JUDGE) sb