IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 15TH MARCH 2011 / 24TH PHALGUNA 1932 WP(C).No. 8122 of 2011(M) --------------------------------------- PETITIONER(S): ------------------------- M/S.ASSOCIATED BUSINESS CORPORATION, COURT ROAD, SULTANPET, PALAKKAD DISTRICT, REPRESENTED BY ITS PARTNER, K.S.HEMA. BY ADV. SRI.P.N.DAMODARAN NAMBOODIRI RESPONDENT(S): --------------------------- 1. THE COMMERCIAL TAX OFFICER, SECOND CIRCLE, DEPARTMENT OF COMMERCIAL TAXES, PALAKKAD-678 001. 2. THE DEPUTY COMMISSIONER (APPEALS) DEPARTMENT OF COMEMRCIAL TAXES, ERNAKULAM-682 015. 3. THE INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, PALAKKAD-678 001. R1 TO R3 BY SR. GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.8122 of 2011 ------------------------------------------- Dated this the 15th day of March, 2011 J U D G M E N T ---------------------- With respect to the year 2008-09, assessment was completed against the petitioner as per Ext.P1 order. By Ext.P2 penalty was also imposed against the petitioner, under Section 67(1) of the Kerala Value Added Tax Act, 2003 (KVAT Act). Aggrieved by Ext.P1 and P2, the petitioner had filed statutory appeals before the 2nd respondent, as evidenced from Ext.P3, P3A. Stay petitions as per Ext.P4 and P4A were also filed along with the appeals. It is stated that the 2nd respondent has not yet considered either the appeals or the stay applications. Grievance of the petitioner is that recovery steps are now being proceeded for realising the amounts in dispute, on issuing revenue recovery notices as per Ext.P5 and P5A, without considering pendency of the appeals. Hence the petitioner seeks direction to keep in abeyance the recovery steps, till the disposal of the appeals. 2. It is submitted that the only dispute in the appeals pertains to rate of tax applicable for 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 as W.P.(C).8122/11 -2- 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 2nd respondent is directed to consider and dispose of Ext.P3 and P3A 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 & P2 orders, which are now sought to be recovered through Ext.P5 and P5A notices, 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, and amount of penalty 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 2nd respondent. C.K.ABDUL REHIM, JUDGE. okb