IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 1ST JULY 2010 / 10TH ASHADHA 1932 WP(C).No. 22149 of 2006(J) --------------------------------------- PETITIONER(S): ------------------------ MESSRS. MCDOWEL AND COMPANY LIMITED, VARANAD, CHERTHALA, REPRESENTED BY ITS GENERAL WORKS MANAGER, R. SUNIL SETHU. BY ADV. SRI.RAJU K.MATHEWS, SRI.M.P.VINOD. RESPONDENT(S): --------------------------- 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, TAXES (B) DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE ASST. COMMISSIONER OF SALES TAX (ASSESSMENT), ALAPPUZHA. 3. DY. COMMISSIONER (APPEALS), KOLLAM. 4. KERALA STATE BEVARAGES (MANUFACTURING AND MARKETING) CORPORATION LIMITED, SASTHA KRIPA, SASTHAMANGALAM, THIRUVANANTHAPURAM. R1 TO R3 BY GOVT. PLEADER MR.V.K. SHAMSUDEEN. R4 BY SRI.K.P.DANDAPANI, SENIOR ADVOCATE, ADV. SRI.ELVIN PETER P.J. SC FOR KSBC. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01/07/2010,ALONG WITH WPC NO. 22160 OF 2006 AND WPC NO. 21808 OF 2006, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 22149/2006-J APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE ORDER IN CA NO.2249-2257 OF 2000 DATED 25/09/2000 OF HONOURABLE SUPREME COURT OF INDIA. EXT.P2: COPY OF THE ORDER DATED 09/08/2005 MODIFYING ORDER DATED 29/01/2004 OF THIS HONOURABLE COURT. EXT.P3: COPY OF THE INTERIM ORDER PASSED BY SUPREME COURT OF INDIA IN SLP(C) 19901 OF 2005. EXT.P4: COPY OF THE NOTICE DATED 20/09/2005 ISSUED BY ASSESSING AUTHORITY. EXT.P5: COPY OF THE ORDER DATED 28/04/2006 OF SUPREME COURT OF INDIA. EXT.P6: COPY OF THE NOTICE DATED 31/07/2006 FOR THE YEAR 2000-2001 ISSUED BY ASSESSING AUTHORITY. EXT.P7: COPY OF THE NOTICE DATED 31/07/2006 ISSUED BY THE ASSESSING AUTHORITY FOR THE YEAR 2002-2003. RESPONDENT'S ANNEXURE: ANNEXURE A: COPY OF THE STATEMENT. //TRUE COPY// P.A. TO JUDGE rs. P.R.RAMACHANDRA MENON, J -------------------------------------------- WP(C) NO. 22149 OF 2006, 22160 OF 2006 AND 21808 OF 2006 -------------------------------------------- Dated this the 1st day of July, 2010 JUDGMENT The issues involved in all these three cases are similar. The proceedings finalized by the assessing authority, which are under challenge, are stated as covered by the judgment in WP(C) 23966/2006, which has been confirmed by the Division Bench on 13.07.2009 in Writ Appeal 1475/2009. 2. The learned counsel for the petitioners and the learned Government Pleader for the 4th respondent submit that, by virtue of the verdict as aforesaid, the matters require to be reconsidered and finalized in the manner as specified, by issuing proper notice to the assessee, with reference to the relevant provisions of law and the observations made by this Court. Paragraph 7 of the judgment in WP(C) 23966/2006 reads as follows: Paragraph 7:- “WPCs are accordingly disposed of quashing demand of interest for all the periods with direction to the assessing officers to completed fresh adjudication after issuing notice containing proposal and after giving opportunity to the petitioners to file reply and of hearing. So far as interim orders issued by this Court and garnishee proceedings challenged in the WPCs are concerned I modify the same authorising immediate recovery in garnishee proceedings only of so much of the interest payable for delay in payment of turnover tax from the end of the month in which Supreme Court pronounced judgment till date of 2 WP(C) Nos.22149/2006 & connected cases. payment, this will be separately worked out by the assessing officer, demand notices will be issued to the petitioners for immediate payment failing which Beverages Corporation will recover such of the amount demanded under the revised notices and pay to the assessing officer. However, payments or recoveries so made will be only provisional and will be subject to final adjudication as above which will cover the entire period of default”. 3. In the above circumstances, all the impugned orders [Exts.P5 and P6 in WP(C) 21808/2006, Ext.P6 in WP(C) 22160/2006 and Exts.P6 and P7 in WP(C) 22149/2006] are set aside. The assessing authority is directed to reconsider the matter in the light of the observations made by this Court in the decision cited supra and the proceedings shall be finalized after hearing the petitioner in accordance with law, as expeditiously as possible, at any rate, within two months from the date of receipt of a copy of this judgment. Writ Petitions are disposed of as above. P.R.RAMACHANDRA MENON JUDGE dnc