IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC FRIDAY, THE 7TH MARCH 2008 / 17TH PHALGUNA 1929 W.P(C).No. 7842 of 2008(H) --------------------------------- PETITIONER: -------------- POPULAR VEHICLES AND SERVICES LTD. REPRESENTED BY MANAGING DIRECTOR, FRANCIS K. PAUL BY ADV. SRI.S.ANIL KUMAR (TRIVANDRUM) SRI.K.S.HARIHARAN SRI.ANIL VINCENT RESPONDENTS: ----------------- 1. ASSISTANT COMMISSIONER (ASSESSMENT) II, SPECIAL CIRCLE - III, COMMERCIAL TAXES, ERNAKULAM. 2. THE DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, ERNAKULAM. BY GOVT. PLEADER, SRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = = W.P. (C) No. 7842 OF 2008 - C = = = = = = = = = = = = = = = Dated this the 7th day of March, 2008 J U D G M E N T Against Exts. P1 and P2 assessment orders for the years 2003-04 and 2003-04 petitioner filed Exts. P4 and P5 appeals. After hearing stay petition, Ext. P6 order of stay was passed and thereafter on an application made by the petitioner, the time for payment was also extended by Ext. P7. Impugning Ext. P6 learned counsel for the petitioner submits that the whole liability arose on account of the department erroneously disallowing the petitioner's claim of sales to Canteen Stores Department. Yet another contention raised was that the levy of interest before the issue of demand notice was irregular and against the judgments rendered by this Court. 2. In my view, the claims raised by the petitioner on the merits of the appeal are not matters which should be adverted to by this Court at this stage. These are contentions for the appellate W.P.(C) No. 7842 OF 2008 - 2 - authority to consider and decide. However, the fact remains that interest has been levied even before the issue of demand notice and this prima facie is a contention which requires examination. Having regard to the facts, although I am not inclined to interfere with the percentage of tax directed to be remitted by the appellate authority, I clarify that the same shall be on the tax that is levied and the interest portion will stand excluded from this. Therefore, the writ petition is disposed of modifying Ext. P6 and directing that the petitioner shall remit 35% of the tax levied for the years 2002-03 and 2003-04 in terms of Exts. P1 and P2 assessment orders and shall furnish security for the balance tax and interest levied on the petitioner. Time for payment will also stand extended by 10 days from today. ANTONY DOMINIC JUDGE jan/-