IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 4TH JANUARY 2010 / 14TH POUSHA 1931 WP(C).No. 37062 of 2009(C) -------------------------- PETITIONER: --------------- NOVARTIS INDIA LIMITED, 44/3055, DESHABHIMANI ROAD, KARUKAPALLY JUNCTION, ERNAKULAM-682 017, REPRESENTED BY ITS AUTHORISED SIGNATORY, MRS.PRIYA PRADEEP. BY ADV. SRI.JOSEPH JERARD SAMSOM RODRIGUES RESPONDENTS: --------------- 1. ASSISTANT COMMISSIONER, SPECIAL CIRCLE-III, DEPT. OF COMMERCIAL TAXES, ERNAKULAM-682 015. 2. DEPUTY COMMISSIONER (APPEALS), DEPT. OF COMMERCIAL TAXES, ERNAKULAM-682 015. 3. PRINCIPAL SECRETARY TO GOVERNMENT, TAXES (B) DEPARTMENT, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER ADV. MR. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04/01/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ............................................................................ W.P.(C) No. 37062 OF 2009 ......................................................................... Dated this the 4th January , 2010 J U D G M E N T Challenging the 'best judgment assessment' made by the assessing authority under Section 22(3) of the KVAT Act in respect of the month of August, 2009, the petitioner has preferred Ext. P2 appeal, along with the petition for stay, which is pending consideration before the second respondent. The grievance of the petitioner is in respect of the coercive steps stated as being pursued against him, notwithstanding the pendency of the above proceedings. 2. By virtue of amendment of the statute, the assessee like the petitioner is bound to file returns effecting payments resorting to electronic media; for which purpose a bank account is stipulated to be opened either in the State Bank of India or in the State Bank of Travancore . It is the case of the petitioner that, it being a multi national company, it is permitted to have the accounts only in two banks in India. To open fresh account or the State Bank of India and in the State Bank of Travancore, as prescribed, it has to obtain approval of the Board of Directors W.P.(C) No. 37062 OF 2009 2 of the Company. Further, being an international company, the petitioner had to furnish so many details to open a new current account and the bank took considerable time to provide the 'user ID' and 'password', which caused some delay in this regard, by which time, the 'best judgment assessment' was made by the assessing authority. 3. The learned Counsel for the petitioner, with specific reference to the case put forth in the Writ Petition as well as to the undisputed facts and figures as revealed from Ext. P6 demand notice, submits that a sum of Rs. 14,58,510/- has already been paid towards the actual tax payable, according to the petitioner, for the month of August, 2009; whereas the present demand notice as borne by Ext. P6 is in respect of the balance sum of Rs. 6,71,805/- so as to top up the figure as given in the 'best judgment assessment', wherein the tax liability is shown as Rs.21,30,315/- (which forms the subject matter of challenge in Ext.P5 appeal). 4. Heard the learned Government Pleader as well. 5. Considering the facts and circumstances, particularly W.P.(C) No. 37062 OF 2009 3 as to the deposit of nearly 2/3rd of the alleged tax liability even on the basis of the 'best judgment assessment' and also in view of the specific nature of the contentions put forth in the memorandum of appeal as well as in the Writ Petition, this Court finds it fit and proper that the appeal be heard and decided by the Appellate Authority, after giving an opportunity of hearing to the petitioner, at the earliest. 6. In the said circumstances, the second respondent is hereby directed to consider and pass appropriate orders on Ext. P2 appeal in accordance with law, after giving an opportunity of hearing to the petitioner, as expeditiously as possible, at any rate within two months from the date of receipt of a copy of the judgment. It is made clear that till such final orders are passed in the appeal, all further proceedings pursuant to Ext. P6 shall be kept in abeyance. The Writ Petition is disposed of as above. P.R. RAMACHANDRA MENON, JUDGE. lk