IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 9TH JANUARY 2008 / 19TH POUSHA 1929 WP(C).No. 30102 of 2004(H) -------------------------- PETITIONER: ------------ RAJA AND RAJA, TIMBER INDUSTRIES AND SAW MILLS, P.O.MATHIKALAM, KODUNGALLUR, TRICHUR DISTRICT REP.BY ITS PROPRIETOR E.S.ASHARAF S/O. SAIDU MOHAMMED, EDAVANAKKATTU HOUSE, P.O.METHALA, MOTHOLA VILLAGE, KODUNGALLUR TALUK. BY ADV. SRI.K.J.MOHAMMED ANZAR RESPONDENTS: ------------- 1. THE SALES TAX OFFICER, KODUNGALLUR SALES TAX OFFICE, KODUNGALLUR, THRISSUR DISTRICT. 2. THE COMMISSIONER OF COMMERCIAL TAXES, DEPARTMENT OF COMMERCIAL TAXES, THIRUVANANTHAPURAM 3. THE INSPECTING ASSISTANT COMMISSIONER DEPARTMENT OF COMMERCIAL TAXES, IRINJALAKUDA, THRISSUR DISTRICT. BY SHRI.K.P.PRADEEP, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) No. 30102/2004 APPENDIX PETITIONER'S EXHIBITS P1 : COPY OF ORDER DATED 27/02/2004 NO.2517/3151/2002-03 ISSUED BY 1ST RESPONDENT. P2 : COPY OF REVISION APPLICATION SUBMITTED BY PETITIONER BEFORE 2ND RESPONDENT DATED 01/10/2004. P3 : COPY OF DELAY CONDONATION APPLICATION DATED 01/10/2004 SUBMITTED BY PETITIONER BEFORE 2ND RESPONDENT. P4 : COPY OF STAY PETITION DATED 01/10/2004 SUBMITTED BY PETITIONER BEFORE 2ND RESPONDENT. P5 : COPY OF DEMAND NOTICE DATED 10/09/2004 ISSUED BY 3RD RESPONDENT. // TRUE COPY // PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, J. ------------------------- WP(C) No. 30102 of 2004 --------------------------------- Dated, this the 9th day of January, 2008 J U D G M E N T Petitioner is challenging recovery proceedings for recovery of arrears of tax, penalty and interest due under the KGST Act. The main dispute is with regard to amount of penalty shown in Ext.P5 notice. Petitioner has produced Ext.P1 penalty order and contended that the amount shown in RR notice is incorrect because the penalty levied under Ext.P1 is only Rs.34,516/-. However, learned Government Pleader submitted that besides the penalty levied under Section 45A, another penalty of Rs.31,720/- is levied on petitioner under Section 45AA of the KGST Act for non-payment of arrears of tax and other amount due under the Act. I feel, petitioner can be granted reduction of penalty demanded under Section 45AA, provided, the arrears of tax and penalty levied under Section 45A and interest thereon are paid within a reasonable time. In the circumstances, this writ petition is disposed of granting time to petitioner till 25/03/2008 to pay the arrears of tax and penalty levied under 45A along with interest. If payment is made so, then the penalty levied under Section 45AA will stand reduced to Rs.5,000/- and the balance penalty will stand canceled. If WP(C) No. 30102/2004 -2- petitioner does not make payment as above, then entire amount including full penalty levied under Section 45AA can be recovered from petitioner. Similarly recovery of penalty levied under Section 45A will be subject to further orders in the statutory revision filed by the petitioner or subsequent challenge thereon. I make it clear that the right to challenge penalty levied under Section 45A is left open and if any reduction is granted, the penalty remitted to that extent will be refunded. This writ petition is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) jg