IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH TUESDAY, THE 2ND DECEMBER 2008 / 11TH AGRAHAYANA 1930 WP(C).No. 35539 of 2008(E) ----------------------------------------------- PETITIONER(S): --------------------- M.ABDUL GAFOOR, GAFOOR TIMBER DEPOT, KALLINGAL, PALAKKAD. BY ADV. SRI.K.M.FIROZ RESPONDENT(S): ------------------------ 1. THE INTELLIGENCE OFFICER, SQUAD NO.VII, COMMERCIAL TAXES, PALAKKAD. 2. THE DEPUTY COMMISSIONER (APPEALS), DEPARTMENT OF COMMERCIAL TAXES, ERNAKULAM. BY GOVERNMENT PLEADER SHRI C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/12/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 35539 OF 2008 E -------------------------------------- Dated this the 2nd December, 2008 JUDGMENT Petitioner challenges Ext.P10 order by which the Appellate Authority granted stay of penalty imposed under Section 44(8) of the KVAT Act, on condition that the petitioner remits fifty per cent and also furnishes security. 2. I heard Dr. K.B. Mohammedkutty, learned senior counsel appearing for the petitioner and the learned Government Pleader. Dr. K.B. Mohammedkutty, learned senior counsel would submit that a perusal of the order would show that the Appellate Authority has found that the penalty order was passed without taking into account basic records, like purchase bills, sales bills, stock inventory and since the above requirements were not satisfied, there is violation of the principles of natural justice and, therefore, the maximum penalty is not warranted in this case. He would contend that on the reasoning in Ext.P10, it was not a case where the maximum penalty was warranted, but WPC.35539/08 E 2 on the other hand, no penalty was warranted and yet, it is stipulated that the petitioner must pay fifty per cent. Learned senior counsel points out that it is very harsh and the penalty is relatable to the value of the goods. 3. Having regard to the circumstances, I feel that the interest of justice would be satisfied if instead of fifty per cent, the petitioner is called upon to pay thirty per cent of the amount and to furnish security for the balance. Accordingly, it is so ordered and the petitioner is given two weeks' time from today to comply with Ext.P10 as modified by this Judgment. Petitioner is also granted one month's time from today for furnishing security for the balance amount. After the petitioner complies with the aforesaid conditions, the Appeal filed by the petitioner will be disposed of as expeditiously as possible. The Writ Petition is disposed of as above. Sd/= K. M. JOSEPH, JUDGE kbk. // True Copy // PS to Judge