IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 26TH JULY 2011 / 4TH SRAVANA 1933 WP(C).No. 20278 of 2011(H) ---------------------------------------- PETITIONER(S): ------------------------ MOHAMMED NOUFAL, S/O. P.K.AHAMMEDKUTTY, M/S. ISMAIL ENTERPRISES, KILIKOLLOOR,KOLLAM. BY SRI.V.CHITAMBARESH, SENIOR ADVOCATE BY ADV. SRI.T.C.SURESH MENON SRI.JIBU P. THOMAS SRI.P.S.APPU SRI.A.R.NIMOD SRI.C.A.ANOOP SRI.MATHEWS RAJU RESPONDENT(S): -------------------------- 1. THE DEPUTY COMMISSIONER(APPEALS), COMMERCIAL TAXES, KOLLAM-1. 2. THE ASSISTANT COMMISSIONER, COMMERCIAL TAXES, SPECIAL CIRCLE, KOLLAM-1. 3. THE INSPECTING ASSISTANT COMMISSIONER COMMERCIAL TAXES, KOLLAM-1. R1 TO R3 BY SR GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.20278/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE ORDER OF ASSESSMENT UNDER KVAT ISSUED BY THE SECOND RESPONDENT DATED 31/1/2011 P2 COPY OF THE ORDER OF ASSESSMENT UNDER CST ISSUED BY THE SECOND RESPONDENT DATED 31/1/2011 P3 COPY OF THE MEMORANDUM OF APPEAL SUBMITTED BY THE PETITIONER BEFORE THE FIRST RESPONDENT UNDER THE KAVT DATED 18/4/2011. P4 COPY OF THE PETITION FOR STAY DATED 18/4/2011 P5 COPY OF THE MEMORANDUM OF APPEAL SUBMITTED BY THE PETITIONER BEFORE THE FIRST RESPONDENT UNDER THE CST DATED 18/4/2011 P6 COPY OF THE PETITION FOR STAY DATED 18/4/2011 P7 COPY OF THE DEMAND NOTICE ISSUED BY THE THIRD RESPONDENT UNDER THE KVAT DATED 17/3/2011 P8 COPY OF THE DEMAND NOTICE ISSUED BY THE THIRD RESPONDENT UNDER THE CST DATED 17/3/2011 P9 COPY OF THE ORDER PASSED BY THE FIRST RESPONDENT UNDER THE KVAT DATED 8/7/2011. P10 COPY OF THE ORDER PASSED BY THE FIRST RESPONDENT UNDER THE CST DATED 8/7/2011. P11 COPY OF THE REVENUE RECOVERY NOTICE ISSUED BY THE THIRD RESPONDENT DATED 16/6/2011. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No.20278 OF 2011 ---------------------------------------------- Dated this the 26th day of July, 2011 JUDGMENT The petitioner challenges Exts.P9 and P10 orders passed by the appellate authority under the Kerala Value Added Tax Act granting stay of proceedings for recovery of the disputed tax on condition that the petitioner pays 50% of the disputed tax and furnishes security for the balance amount. According to the petitioner, Exts.P9 and P10 orders have been passed by the appellate authority in a mechanical manner without applying his mind. He submits that the petitioner has a very strong prima facie case for grant of full stay, despite which the appellate authority has insisted on payment of 50% as a condition for stay. The petitioner contends that this Court has in several decisions directed that the appellate authority should not pass stay orders in a mechanical manner. 2. I have heard the learned Government Pleader also. On a reading of Exts.P9 and P10, I am not satisfied that the W.P.(C)No.20278/11 2 appellate authority had passed those orders without application of mind. Therefore, I am not inclined to interfere with those orders. 3. In view of the above, the learned counsel for the petitioner prays for some time to pay off the amount. In the facts and circumstances of the case, I dispose of this writ petition with a direction to respondents 2 and 3 to permit the petitioner to pay 50% of the amount as directed in Exts.P9 and P10 orders in two equal monthly instalments payable on 1.9.2011 and 1.10.2011. If the petitioner pays the two instalments as directed above promptly on due dates, further coercive proceedings shall be kept in abeyance. I make it also clear that the petitioner will be liable to furnish adequate security for the balance 50% as directed in Exts.P9 and P10 orders. S. SIRI JAGAN, JUDGE acd W.P.(C)No.20278/11 3 W.P.(C)No.20278/11 4