IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 24TH MAY 2011 / 3RD JYAISHTA 1933 WP(C).No. 11276 of 2011(H) -------------------------- PETITIONER(S): --------------- M/S.DAEHSAN TRADING (INDIA) PVT.LTD., 41/3957-A, PROVIDENCE JUNCTION, OLD RAILWAY STATION ROAD, COCHIN - 18, REPRESENTED BY ITS BRANCH MANAGER, SRI.V.G.NARAYANAN NAIR. BY ADV. SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SMT.NIVEDITA A.KAMATH RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER (IB), DEPARTMENT OF COMMERCIAL TAXES, MATTANCHERRY AT ALUVA – 682 121. 2. THE STATE OF KERALA, REPRESENTED BY ITS SECRETARY (TAXES), SECRETARIAT, THIRUVANANTHAPURAM – 695 001. BY GOVT. PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/05/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.11276 of 2011-H ---------------------------------------- Dated this the 24rd day of May, 2011. J U D G M E N T This writ petition was filed challenging Ext.P8 order, through which penalty was imposed against the petitioner under Section 67(1) of the Kerala Value Added Tax Act (KVAT Act). When the writ petition came up for admission, an interim order was issued directing the petitioner to file statutory appeal against Ext.P8 and the recovery of amounts covered under Ext.P8 was directed to be kept in abeyance for a period of six weeks, for facilitating such filing of appeal. The petitioner has now produced Ext.P9, copy of the appeal as well as Ext.P10 copy of the stay petition, which they have filed before the appellate authority, the Deputy Commissioner (Appeals), Ernakulam. 2. Contention of the petitioner is that the issue in dispute, which is the basis for imposing penalty, pertains to the classification of the goods as to whether it is a drug or not. It is contended that the view taken by the authority is W.P(C) No.11276 of 2011-H 2 without any basis and there is no opinion received from any competent authority. Hence the petitioner feels that there is a fair chance of the appeal being allowed. 3. However, since the matter is in seizin of the appellate authority, I am not proposing to enter upon any findings regarding merits of the contentions. Ends of justice will be achieved if a direction is issued to the appellate authority to dispose of the appeal on an early basis and till then to restrain recovery steps, subject to conditions. 4. Accordingly, the writ petition is disposed of directing the Deputy Commissioner (Appeals), Ernakulam to consider and dispose of Ext.P9 appeal, after affording an opportunity of hearing to the petitioner, as early as possible, at any rate within a period of two months from the date of receipt of a copy of this judgment. 5. Till such time the appeal is disposed of as directed above, recovery of amounts covered under Ext.P8 shall be kept in abeyance subject to condition of the petitioner W.P(C) No.11276 of 2011-H 3 remitting 20% of the amount of penalty imposed and on furnishing Security Bond for the balance amount, within a period of two weeks from the date of receipt of a copy of this judgment. C.K.ABDUL REHIM JUDGE ab