IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 10TH NOVEMBER 2010 / 19TH KARTHIKA 1932 WP(C).No. 33942 of 2010(P) -------------------------- PETITIONER(S): --------------- BABY ANTONY, PROPRIETOR, ENVEES INN, ERAMALLOOR P.O. BY ADV. SMT.S.K.DEVI SRI.SHANMUGHAM D. JAYAN RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER, SQUAD NO.III, COMMERCIAL TAXES, ALAPPUZHA, PIN-688001. 2. THE DEPUTY TAHSILDAR (RR), CHERTHALA-688524. SENIOR GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J ------------------------------ WP(C) NO. 33942 OF 2010 -------------------------------------- Dated this the 10th day of November, 2010 JUDGMENT Petitioner is a registered dealer under the Kerala Value Added Tax Act, 2003 (KVAT Act) as well as Kerala General Sales Tax Act (KGST Act). For the years 2005-06, 2006-07 and 2007-08, penalty was imposed against the petitioner under Section 45 A of the KGST Act. The orders of penalty was challenged in appeal and pursuant to directions issued by the appellate authority certain modifications were granted. At present, recovery steps has been initiated under the provisions of the Kerala Revenue Recovery Act for realizing the balance amount. Exts.P1 to P6 are notices issued under Section 7 and 34 of the Kerala Revenue Recovery Act. 2. The petitioner had approached this Court on an earlier occasion and as per directions issued by this Court he had remitted as sum of Rs.9 lakhs. Subsequently the 2 WP(C) No. 33942/2010 sales tax appellate Tribunal had granted some relief in the second appeals. Accordingly the first respondent had revised the demand and Exts.P7 to P9 are the proceedings issued finalizing the balance amount. The petitioner had approached the first respondent by submitting Ext.P10 application seeking permission for payment of the balance amount in instalment, expressing financial difficulties in effecting payment of the amount due in a lump sum. Grievance of the petitioner is that without considering Ext.P10 request coercive steps of recovery is now being pursued. 3. Under the above circumstances, the limited prayer of the petitioner is to permit payments of the balance amount in instalments. It is also contended that the second respondent is insisting on payment of collection charges, for which the petitioner is not liable. 4. Heard learned Government Pleader appearing on behalf of the respondents. Considering the facts and 3 WP(C) No. 33942/2010 circumstances, I am of the view that the Writ Petition can be disposed of granting instalment facility to the petitioner for payment of the balance outstanding. Accordingly the respondents are directed to keep all further steps of recovery in abeyance provided the petitioner remits the entire balance amount of penalty and interest due thereon, in 8 (eight) equal monthly instalments falling due on or before 30.11.2010 and on or before the last day of the succeeding months. 5. It is made clear that the recovery of collection charges if any due shall be kept in abeyance till a final decision is taken by the Hon’ble Supreme Court in the matter which is pending disposal on the issue regarding sustainability of collection charges. It is made clear that the petitioner will be free to remit the amount before the first respondent. 6. It is also made clear that on the event of default in payment of any of the instalments as stipulated above, 4 WP(C) No. 33942/2010 the respondents will be free to proceed with further steps pursuant to the notices already issued. C.K. ABDUL REHIM JUDGE dnc