IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 6TH JUNE 2007 / 16TH JYAISHTA 1929 WP(C).No. 13602 of 2007(T) -------------------------- PETITIONER: ------------ MS.HILLWOOD IMPORT AND EXPORT PVT.LTD., N.H.ROAD, CHUNGAM, FEROKE, CALICUT, BY MANAGING DIRECTOR, V.SHERIF. BY ADV. SRI.P.RAGHUNATH SRI.PREMJIT NAGENDRAN RESPONDENTS: ------------- 1. THE INTELLIGENCE OFFICER (IB), COMMERCIAL TAXES, KOLLAM. 2. INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, KOZHIKODE. 3. DEPUTY COMMISSIONER OF COM.TAXES, (APPEALS) KOLLAM. BY ADV. SHRI.MOHAMMED RAFFIQ, GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/06/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No. 13602/2007 APPENDIX PETITIONER'S EXHIBITS P1 : COPY OF ORDER U/S 45A DATED 10/11/2006 FOR 2001-02. P2 : COPY OF ORDER U/S/ 45A DATED 10/11/2006 FOR 2002-03. P3 : COPY OF ORDER U/S/ 45A DATED 10/11/2006 FOR 2003-04. P4 : COPY OF REVISION FILED AGAINST EXT.P1. P5 : COPY OF REVISION FILED AGAINST EXT.P2. P6 : COPY OF REVISION FILED AGAINST EXT.P3. P7 : COPY OF NOTICE UNDER RR ACT ISSUED BY 2ND RESPONDENT. P8 : COPY OF ORDER PASSED BY 3RD RESPONDENT ON STAY PETITION FOR 2001-02. P9 : COPY OF ORDER PASSED BY 3RD RESPONDENT ON STAY PETITION FOR 2002-03. P10 : COPY OF ORDER PASSED BY 3RD RESPONDENT ON STAY PETITION FOR 2003-04 // TRUE COPY // PA TO JUDGE jg C.N.RAMACHANDRAN NAIR, J. ----------------------------------- WP(C) No. 13602 of 2007 --------------------------------- Dated, this the 6th day of June, 2007 J U D G M E N T Petitioner is challenging Exts. P8, P9 & P10 orders issued by the revisional authority dismissing stay petitions filed by the petitioner against recovery of penalty during pendency of the revision petitions. Statutory revisions against penalty orders are pending before the revisional authority. Even though counsel for the petitioner proceeded to argue on the merits of the case, it is neither proper nor legal for this Court to consider merits of the case, because if this Court considers the matter on merits and decides it, the same will make the revisions infructuous or at least the revisional authority will loose his authority to give independent findings. Therefore there is no scope for considering detailed merits of the case raised by the petitioner in writ proceedings. However, since the amount involved is massive, it is the duty of this Court to see whether orders for recovery of said amount during pendency of revisions will lead to injustice for the petitioner. The fact of the case is that petitioner and others, in detailed enquiry conducted by the Department pursuant to specific direction issued by this Court in W.P.(C)No. 13602/2007 -Page numbers- W.P.(C)No. 33646/2005, were found to be engaged in clandestine business defrauding Revenue. The specific case of the petitioner in that WP(C) was that some dealers including the petitioner opened bank account in the name of that petitioner and accounted business in his name without his knowledge. This Court, therefore, ordered enquiry which revealed the involvement of petitioner and others in unaccounted business and tax evasion. Having regard to the findings, in the impugned penalty orders, I do not think petitioner is entitled to absolute stay against recovery proceedings during pendency of the revisions. In the circumstances, WP(C) is disposed of granting stay against recovery proceedings on petitioner remitting 20% of the demand in two equal monthly installments, first of which will be paid on or before 30/06/2007 and balance on or before 31/07/2007. Recovery proceedings will be kept in abeyance for payment as above and if petitioner does not make payments, recovery will be continued against the petitioner without waiting for the result of the revisions. 2. Since several connected cases are involved, there will be direction to the Commissioner of Commercial Taxes to appoint one person to hear the connected appeals and revisions in the W.P.(C)No. 13602/2007 -Page numbers- connected W.P.(C)Nos. 15061/2007, 15529/2007, 13602/2007, 33852/2006, 33933/2006, 34002/2006, 34018/2006 & 33646/2005. The authority nominated by the Commissioner of Commercial Taxes is directed to take up the appeals / revisions and dispose of the same within three months from the date of making payments, wherever payments are orderd as condition for stay. This WP(C) is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) jg