IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH MONDAY, THE 7TH JULY 2008 / 16TH ASHADHA 1930 WP(C).No. 36979 of 2007(B) -------------------------- PETITIONER: ------------ M/S. SES TECHNOLOGIES LTD., HB 85, THUSHARA, PANAMPALLY NAGAR, COCHIN REPRESENTED BY ITS REGIONAL CREDIT CONTROLLER MR.PROMNOD R. BY ADV. SMT.LATHA K. RESPONDENTS: ------------- 1. THE STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY, SECRETARIATE, THIRUVANANTHAPURAM. 2. ASSISTANT COMMISSIONER (ASSMT), SPECIALA CIRCLE III, ERNAKULAM. 3. DEPUTY COMMISSIONER (APPEALS) III, COMMERCIAL TAXES, ERNAKULAM. 4. ACCOUNTANT GENERAL, OFFICE OF THE ACCOUNTANT GENERAL, ERNAKULAM. BY GOVERNMENT PLEADER ADV.SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF APPELLATE ORDER DT 23.12.06 FOR 2001-02 ISSUED BY R3. P2 COPY OF LETTER DT 12.11.07 FILED BEFORE R2. P3 COPY OF ORDER DT 24.11.07 ISSUED BY R2. /TRUE COPY/ P.A.TO JUDGE K.M. JOSEPH, J. ```````````````````````````````````````````````````` W.P.(C) No. 36979 OF 2007 B ```````````````````````````````````````````````````` Dated this the 7th day of July, 2008 J U D G M E N T Petitioner seeks quashing of Ext.P3 order and a direction to issue modified order for the assessment year 2001-02 by giving effect of Ext.P1 appellate order. Case of the petitioner in brief is as follows. By Ext.P1 order, the appellate authority allowed the appeal for the assessment year 2001-02 and directed the assessing authority to modify the assessment by giving effect of Ext.P1 appellate order. The petitioner filed Ext.P2 application seeking modification. The petitioner received Ext.P3 rejection order wherein it is stated as follows: “ As per reference 2nd cited above you have requested to modify the assessment order for the year 2001-02 on the basis of assessment modified by the Deputy Commissioner(Appeals), Ernakulam. But the accountant general during the audit visit has objected to grant exemption as per WPC.36979/07 : 2 : SRO.1090/99 on the turnover of sale of computer spares to computer manufacturers within the state since the assess has not produced any proof that the products had suffered tax manufactured out of the goods so purchased for manufacture. Hence, it is not possible for me at present to modify the assessment based on the report of the audit officer. The modified order will be issued immediately after finalising this aspect.” According to the petitioner, under Rule 43(2) of the Kerala General Sales Tax Rules, assessing authorities are bound to give effect to the appellate order and communicate the modified order within 90 days. It is the case of the petitioner that in case the assessing authorities are aggrieved by Ext.P1 order, they can take the matter in appeal and they have no authority not to comply with the appellate order and that the Rule also provides giving effect to the appellate order and issuing the modified order within a stipulated period of time. 2. Learned Government Pleader would submit that no WPC.36979/07 : 3 : appeal has been preferred against Ext.P1. Thus, Ext.P1 has become final. Then, there can be no implementation of Ext.P1 and issuing modified order. In such circumstances, it is declared that Ext.P1 is liable to be implemented and the authority must issue the modified order pursuant to Ext.P1. Accordingly, there will be a direction to the 2nd respondent to issue a modified order for the assessment year 2001-02 by giving effect to the appellate order within a period of one month from the date of receipt of a copy of this judgment. Writ petition is disposed of as above. Sd/- (K.M.JOSEPH, JUDGE) aks