IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 16TH OCTOBER 2009 / 24TH ASWINA 1931 WP(C).No. 29316 of 2009(H) -------------------------- PETITIONER(S): --------------- SOUTHERN ISPAT LTD., 19/629(1) "SREYAS", NEAR YAKKARA SCHOOL BUS STOP, WEST YAKKARA, PALAKKAD-678 001, REPRESENTED BY ITS EXECUTIVE OFFICER, SRI.K.K.AGARWALLA. BY ADV. SRI.S.RAMESH BABU RESPONDENT(S): --------------- 1. STATE OF KERALA REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, ERNAKULAM. 3. THE ASSISTANT COMMISSIONER (KVAT), COMMERCIAL TAXES, SPECIAL CIRCLE, PALAKKAD. BY GOVT. PLEADER SRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 29316 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 16th day of October, 2009 J U D G M E N T 1. The petitioner was imposed with penalty under Section 67 (1) of the Kerala Value Added Tax Act, 2003 (KVAT Act) as evidenced by Exts.P1 (a) & P1 (b), with respect to the years 2005-06 & 2006-07. The order of penalty were challenged in appeal filed as Ext.P2 (a) & P2 (b), before the 2nd respondent. It is submitted that the above said appeals are pending consideration and disposal. Grievance of the petitioner is that without taking note of pendency of the appeals, steps has now been initiated by the 3rd respondent for re-opening the assessment already completed, pertaining to the above said years, based on the allegations which lead to imposition of penalty. According to the petitioner if the assessments are re-opened before disposal of the appeals, that will cause severe prejudice and hardship to them. The petitioner is expecting considerable W.P.(C)No. 29316 of 2009 2 reliefs in the appeals. Therefore the petitioner is seeking directions to the 3rd respondent to keep in abeyance the proceedings now initiated for re-opening of the assessments, pursuant to issuance of Ext.P3 notice, till disposal of the appeals (Exts.P2 (a) & P2(b). 2. It is evident from Ext.P3 notice that the petitioner was called upon to produce books of accounts in pursuance of re-opening the assessments which stand already completed, with respect to the years 2005-06 & 2006-07. It is evident that such action is proposed mainly based on Exts.P1 (a) & P1(b) orders. Therefore it is only just and proper in the interest of justice to restrain finalisation of assessment till the disposal of the appeals by the 2nd respondent. 3. In the result, the writ petition is disposed of directing the 3rd respondent to finalise the assessment proposed, based on Ext.P1 (a) & P1 (b) orders, only after the 2nd respondent dispose of Ext.P2 (a) & P2 (b) appeals. W.P.(C)No. 29316 of 2009 3 4. The 2nd respondent is further directed to consider and dispose of Exts.P2 (a) & P2 (b) appeals, after affording an opportunity of hearing to the petitioner, as early as possible, at any rate within two months from the date of receipt of copy of this judgment. C.K. ABDUL REHIM JUDGE shg/