IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 28TH MARCH 2011 / 7TH CHAITHRA 1933 WP(C).No. 9602 of 2011(A) -------------------------------------- PETITIONER(S): ------------------------ QUILON TRADING COMPANY, VII/234B, NEDUMBASSERRY, P.O. MEKKAD, THURUTHISSERRY, ERNAKULAM DISTRICT, REP. BY M.P. DIVAKARAN, PARTNER. BY ADV. SRI.P.RAGHUNATH, SRI.PREMJIT NAGENDRAN. RESPONDENT(S): -------------------------- 1. INTELLIGENCE OFFICER (IB), ERNAKULAM-682 015. 2. INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, MATTANCHERRY, KOCHI-682 002. 3. KERALA VALUE ADDED TAX APPELLATE TRIBUNAL, ERNAKULAM-682 015. R1 TO R3 BY GOVT. PLEADER MR.V.K. SHAMSUDHEEN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/03/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.9602 of 2011 ------------------------------------------- Dated this the 28th day of March, 2011 J U D G M E N T ---------------------- With respect to the years 2007-08 and 2008-09, penalty was imposed against the petitioner under Section 67(1) of the Kerala Value Added Tax Act, 2003 (KVAT Act). The orders imposing penalty was confirmed in first appeal through Ext.P3 order. The petitioner had preferred Ext.P4 and P5 second appeals before the 3rd respondent tribunal. Stay petitions as per Ext.P6 and P7 were also filed along with the appeals. It is stated that the 3rd respondent tribunal has not yet considered either the appeals or the stay applications. Grievance of the petitioner is that recovery steps are now being proceeded against for realising the amounts in dispute, without considering pendency of the appeals. Hence the petitioner seeks direction to keep in abeyance the recovery steps till disposal of the appeals. 2. It is submitted that the only dispute in the appeals pertains to rate of tax applicable to the products, “Ujala Supreme” and “Ujala Stiff & Shine” dealt with by the petitioner. It is further submitted that the question is now pending consideration in various other cases filed by the manufacturer W.P.(C).9602/11 -2- as well as other dealers, awaiting decision on the issue from the Hon'ble Supreme Court and from this court. It is pointed out that this court had granted stay against recovery of the tax amounts in dispute in many other cases, pending disposal of such appeals, subject to condition of payment of 1/3rd of the amounts. Hence I am of the opinion that a similar relief can be granted in this case also. 3. In the result the 3rd respondent is directed to consider and dispose of Ext.P4 and P5 appeals, after affording an opportunity of hearing to the petitioner, as early as possible, at any rate within a period of 3 months from the date of receipt of a copy of this judgment. 4. Realisation of amounts covered under Ext.P1 and P2, confirmed in Ext.P3, which is now sought to be recovered, shall be kept in abeyance subject to condition of the petitioner remitting 1/3rd of the tax amount in dispute and also on furnishing security bond for the balance amount, within two weeks from the date of receipt of a copy of this judgment. 5. The petitioner will produce a copy of this judgment before the 3rd respondent. C.K.ABDUL REHIM, JUDGE. okb