IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 11TH JANUARY 2008 / 21ST POUSHA 1929 OP.No. 26438 of 2002(V) ----------------------- PETITIONER: ------------ M/S.A.V.M.HATCHERRIES & POULTRY BREEDING RESEARCH CENTRE (P) LTD., KOLLANGODE ROAD PUDUNAGARAM, REP.BY ITS DIRECTOR A.A.MOHAMMED FAROOQUE. BY ADV. SRI.N.MURALEEDHARAN NAIR SRI.BENOY SASI RESPONDENTS: ------------- 1. SALES TAX OFFICER, CHITTUR, PALAKKAD DISTRICT. 2. DEPUTY COMMISSIONER OF COMMERCIAL TAXES PALAKKAD. 3. COMMISSIONER OF COMMERCIAL TAXES, THIRUVANANTHAPURAM. BY SHRI.K.P.PRADEEP, GOVERNMENT PLEADER THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 11/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.NO. 26438/2002 ORDERS ON CMP NO.44922/2002 IN O.P.NO. 26438/2002 AND ON CMP NO.66573/2002 IN CMP NO.44922/2002 IN O.P.NO. 26438/2002 DISMISSED. 11/01/2008 SD/- (C.N.RAMACHANDRAN NAIR, JUDGE) APPENDIX PETITIONER'S EXHIBITS P1 : COPY OF PENALTY ORDER PASSED BY R1 FOR THE YEAR 98-99 DATED 05/06/2001. P2 : COPY OF ORDER PASSED BY R2 DATED 29/06/2001. P3 : COPY OF ARGUMENT NOTE FILED BY PETIITONER BEFORE R3. P4 : COPY OF ORDER PASSED BY R3 DATED 17/08/2002. // TRUE COPY // PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, J. ----------------------------------- O.P. No. 26438 of 2002 ------------------------- Dated, this the 11th day of January, 2008 J U D G M E N T I heard learned counsel for petitioner and learned Government Pleader. 2. Petitioner is challenging Ext.P4 order whereunder Commissioner of Commercial Tax has suo motu cancelled first revisional authority’s order vacating the penalty levied on petitioner for evasion of sales tax. According to petitioner, petitioner claimed exemption based on Government Notification and only last year this Court held that petitioner is not entitled to sales tax exemption vide decision in State of Kerala Vs. Subaida Begum, reported in 2006 (4) KLT 276. Based on the above reported decision, this Court disposed of the assessment case yesterday, 10/01/2008, in STRev. No.35/2005. This Court, though already decided the matter against petitioner following the earlier judgment, granted a concessional interest based on earlier amnesty benefit and allowed the petitioner to clear the arrears of tax with 60% interest after waiving 40%. The condition for waiver of 40% interest is on payment of tax within the time stated thereon. In view of the judgment in the above case of petitioner, in STRev.No.35/2005, I feel, petitioner is entitled to, O.P.NO. 26438/2002 -2- atleast, reduction of penalty though not full waiver. In the circumstances, this original petition is allowed in part reducing the penalty to rupees one lakh, but on condition that petitioner clears the arrears of tax with 60% interest thereon in terms of judgment in the above case, and pays rupees one lakh towards penalty on or before 28/02/2008. If petitioner does not remit the tax in terms of judgment in STRev. case and the penalty within the time as above, then full penalty will stand restored and in that event, this original petition will be treated as dismissed. (C.N.RAMACHANDRAN NAIR, JUDGE.) jg