IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN THURSDAY, THE 11TH AUGUST 2011 / 20TH SRAVANA 1933 WA.No. 1169 of 2011() --------------------- AGAINST THE JUDGEMENT IN WPC.33809/2010 Dated 08/07/2011 .................... APPELLANT/ PETITIONER ------------------------ SANTHIKUMAR.G.VED. PROPRIETOR, M/S.ROHIT COATS, ATHANI, PERINGADOOR.P.O,THRISSUR. BY ADV. SMT.S.K.DEVI SRI.SANTHOSH P.ABRAHAM RESPONDENTS/ RESPONDENTS -------------------------- 1. THE COMMERCIAL TAX OFFICER,COMMERCIAL TAXES, IIIRD CIRCLE, THRISSUR- 690001. 2. THE FAST TRACK TEAM II, DEPT.OF COMMERCIAL TAXES, IIIRD CIRCLE, THRISSUR, REPRESENTED BY THE COMMERCIAL TAX OFFICER, III CIRCLE, PIN-690001. GOVT.PLEADER, SRI.MUHAMMED RAFIK THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 11/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & P.S.GOPINATHAN, JJ. -------------------------------- W.A.No.1169 OF 2011 -------------------------------- Dated this the 11th day of August, 2011 J U D G M E N T ~~~~~~~~~~~ C.N.Ramachandran Nair, J. Appeal is filed against the judgment of the learned Single Judge declining to entertain WP(C) filed challenging sales tax assessments both under the KGST Act and CST Act for the assessment years 2001-2002 to 2004-2005. 2. We have heard the leaned counsel for the appellant and the Government Pleader for the respondent. 3. The contention of the appellant is that assessments were completed without giving opportunity by Fast Track team which passed orders under Section 17D of the KGST Act without even hold sittings to hear the assessee. The Government Pleader submitted that assessee has not produced the accounts or documents to prove the returns filed. The main case of the appellant is that they are entitled to sales tax exemption upto W.A.No.1169/2011 2 2004-2005 and that is the reason why tax was not remitted. He further brought to our notice the subsequent judgment of the Court in S.T.R.V. Nos.34 and 41/2011 wherein this Court directed reconsideration of restoration of exemption initially granted but later withdrawn on account of suppression practiced by the appellant. 4. After hearing both sides and after going through the orders and in view of the judgment in the above two S.T.R.Vs what we feel is that if the exemption originally granted is restored based on our judgment above referred, the appellant will be able to wipe off the liability or at least substantially reduce the liability which as per the impugned orders is above a crore. Since we have already remanded the S.T.R.V. cases above, we feel one more opportunity can be granted on condition to the appellant. Accordingly, we dispose of the Writ Appeal by vacating the impugned judgment of the learned Single Judge and dispose of the W.P.(C) with the following directions. 1) The recovery proceedings pursuant to the assessment orders issued under the KGST and CST Act for 2001-2002 to W.A.No.1169/2011 3 2004-2005 will remain stayed for a period of three months from now on condition of the appellant depositing a sum of Rs.15 lakhs with the Assessing Officer within a period of two weeks from now. There will be a direction to the Assessing Officer to pass orders based on our judgment in S.T.R.V. Nos.34 and 41 of 2011 within a period of three weeks from now and give copy of the proceedings to the assessee. 2) The Fast Track team is directed to reconsider the assessment under the KGST and CST Act for 2001-2002 to 2004- 2005 treating the orders as proposals for assessment and give opportunity to the assessee to produce the exemption certificate if restored by the Assessing Officer as per judgment above referred and also produce documents of accounts and records to establish the genuineness, correctness and completeness of the returns filed. 3) The Fast Track team is directed to complete the revision of all the eight assessments for the four years within a period of three months from today. If payment is made as above, recovery of balance will remain stayed for three months from now and thereafter recovery will be based on revised orders to W.A.No.1169/2011 4 be issued by the Fast Track team. The appellant will respond to all notices and appear and produce records and co-operate with the officers for compliance of the judgment within the time frame stated above. (C.N.RAMACHANDRAN NAIR, JUDGE) ( P.S.GOPINATHAN, JUDGE) ps/12/8