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 8TH JULY 2010 / 17TH ASHADHA 1932 ST.Rev..No. 154 of 2010() ------------------------- TA.441/2009 of S.T.A.TRIBUNAL,ADDL.BENCH,PALAKKAD .................... REVISION PETITIONER: ---------------------------------------- M/S.A.P.STEEL RE-ROLLING MILLS, NIDA, KANJIKODE, PALAKKAD, REPRESENTED BY ITS MANAGING DIRECTOR, K.PANKAJAKSHAN. BY ADV. SRI.HARISANKAR V. MENON SRI.MAHESH V.MENON RESPONDENT(S): --------------- STATE OF KERALA. BY G.P.SRI. MOHAMMED RAFIQ THIS SALES TAX REVISION HAVING COME UP FOR ADMISSION ON 08/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, & P.S. GOPINATHAN, JJ. -------------------------------------------- S. T. Rev. No. 154 of 2010 -------------------------------------------- Dated this the 8th day of July, 2010 JUDGMENT Ramachandran Nair, J. Revision is filed against penalty order sustained by the Tribunal in the case of the petitioner for failure to recover tax from the contractors' bills in terms of Section 7(7B) of the KGST Act. The default pertains to payments made to five contractors in the course of four years. The specific case of the petitioner is that these contractors were assessed for the turnover in respect of the very same items of work and so much so failure is only technical which has not led to any loss of revenue. However, on going through the Tribunal's order we notice that petitioner has not established the case before the Tribunal, and they had no occasion to consider it. In order to prove a claim of this nature, it was for the petitioner to produce copies of assessment orders of all the contractors, along with copies of return and statement of break-up of turnover of contract amount returned by the contractors for assessment. It is for the petitioner to obtain these documents, and ST Rev. 154/2010 2 produce before the Tribunal along with an application for review of the order. If such an application is filed along with details, the Tribunal will give opportunity to the department to cross-check with assessing officers about payment of tax by contractors, and if tax is paid, levy of penalty calls for reconsideration and if at all levy is made, quantum should be fixed by taking into account the fact that failure has not led to evasion or loss of revenue to the State. Petitioner is given two months' time to obtain the details and another one month's time to make application before the Tribunal and if such an application is filed, the Tribunal will entertain the same and dispose of it after giving opportunity to the department. If the petitioner or contractors make application before the assessing officers the assessing officers will give attested copies of required documents for production before the Tribunal. (C.N.RAMACHANDRAN NAIR) Judge. (P.S. GOPINATHAN) Judge. kk ST Rev. 154/2010 3