IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 23RD JUNE 2011 / 2ND ASHADHA 1933 WP(C).No. 16846 of 2011(E) -------------------------- PETITIONER ------------------- JYOTHY LABORATORIES LIMITED, KANDANASSERRY.P.O., THRISSUR, REPRESENTED BY ITS SENIOR OFFICER (ACCOUNTS) - T.V.TILAKAN. BY ADVS. SRI.P.RAGHUNATH SRI.PREMJIT NAGENDRAN RESPONDENT(S): ---------------------------- 1. ASSISTANT COMMISSIONER[ASSESSMENT], COMMERCIAL TAXES, SPECIAL CIRCLE, THRISSUR-680 004. 2. THE INSPECTING ASSISTANT COMMISSIONER, COMMERCIAL TAXES, THRISSUR-680 004. 3. KERALA VALUE ADDED TAX ACT APPELLATE TRIBUNAL, ERNAKULAM- 682 015. BY GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 16846 of 2011(E) ---------------------------------------- APPENDIX --------------- PETITIONER'S EXHIBITS ------------------------------------ EXT.P1. COPY OF ASSESSMENT ORDER FOR JAN. 2010 DATED 01.03.2010 EXT.P2. COPY OF ASSESSMENT ORDER FOR FEB. 2010 DATED30.03.2010. EXT.P3. COPY OF ORDER DT. 06.04.11 IN KVATA 1048/2010 (JANUARY) AGAINST EXT.P1 ORDER. EXT.P4. COPY OF ORDER DT. 06.04.11 IN KVATA 1593/2010 (FEBRUARY) AGAINST EXT.P2 ORDER. EXT.P5. COPY OF APPEAL FILED AGAINST EXT.P1. ORDER EXT.P6 .COPY OF APPEAL FILED AGAINST EXT.P2. ORDER EXT.P7.COPY OF STAY PETITION FILED ALONG WITH EXT.P5 APPEAL. EXT.P8. COPY OF STAY PETITION FILED ALONG WITH EXT.P6 APPEAL. RESPONDENT'S EXHIBITS : NIL ------------------------------------- / TRUE COPY / P.A. TO JUDGE VK C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 16846 of 2011 --------------------------------- Dated this the 23rd day of June, 2011 JUDGMENT Exts.P1 and P2 orders of assessments confirmed by the first appellate authority in Exts. P3 and P4, were challenged by the petitioner in further statutory appeals filed before the 3rd respondent Tribunal, as evidenced from Exts.P5 and P6. Along with the appeals Exts.P7 and P8 stay petitions were also filed. It is stated that the appeals as well as the stay petitions are pending consideration and disposal before the 3rd respondent. 2. The dispute involved in the appeals solely pertains to rate of tax applicable to products dealt with by the petitioner namely 'Ujala Supreme' and 'Ujala Stiff & Shine'. Learned Government Pleader points out that a clarification issued by the Commissioner, Commercial Taxes in exercise of power under Section 94 of the Kerala Value Added Tax Act (KVAT Act) has already been upheld by a Division Bench of this court in an appeal (OTA) filed. It is further submitted that a tax revision case filed against a different view taken by the State Appellate Tribunal WP(C) .16846/2011 2 has also been reversed recently, by the Division Bench. On the other hand, learned Government Pleader submits that, the decision of this court with respect to the clarification issued by the Commissioner is now under challenge before the Hon'ble Supreme Court in a Special Leave Petition filed. It is also stated that a Special Leave Petition is being filed against the decision in the tax revision case. According to him the ultimate decision has to come from the Hon'ble Supreme Court, regarding the rate of tax applicable. Under such premise he seeks stay of the recovery steps, till the disposal of the appeals. It is pointed out by the learned Government Pleader that there is no stay granted by the Hon'ble Supreme Court and as per the legal position now stands settled, the petitioner is liable for payment of the amounts. 3. Considering pendency of the appeals before the statutory authority, I am of the view that interest of justice will be served if a direction is issued for an expeditious disposal of the matter and to restrain the recovery steps till then subject to conditions. Of course, the ultimate liability will depend upon the outcome of the matter which is now pending before the Hon'ble Supreme Court. WP(C) .16846/2011 3 4. Under the above mentioned circumstances, the writ petition is disposed of directing the 3rd respondent to consider and dispose of Exts.P5 and P6 appeals, after affording an opportunity of hearing to the petitioner, as early as possible, at any rate, within a period of two months from the date of receipt of a copy of this judgment. 5. Till such time the appeals are disposed of as directed above, recovery of amounts covered under Exts.P1 and P2 orders of assessments which were confirmed through Exts.P3 and P4, shall be kept in abeyance, subject to condition of the petitioner remitting 50% of the amounts due under the assessment order and on furnishing Security Bond for the balance amount, within a period of three weeks from the date of receipt of a copy of this judgment. While collecting payment of 50% of the amount due, credit shall be given to amounts if any already remitted by the petitioner. C.K.ABDUL REHIM,JUDGE pmn/ WP(C) .16846/2011 4