IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH WEDNESDAY, THE 23RD JULY 2008 / 1ST SRAVANA 1930 WP(C).No. 16414 of 2006(D) ------------------------------------------------ PETITIONER: ------------------ M/S. PRIMA BEVERAGES (P) LTD., DEVELOPMENT AREA, ERUMATHALA P.O., REPRESENTED BY ITS DIRECTOR-SWATI GUPTA. BY ADV. SRI.N.N.SUGUNAPALAN (SR.) SRI.S.SUJIN RESPONDENTS: ----------------------- 1. THE SALES TAX OFFICER, 1ST CIRCLE, ERNAKULAM. 2. THE DEPUTY TAHSILDAR (R.R.) KANAYANNUR. 3. STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SHRI C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C). NO. 16414 OF 2006 D PETITIONER'S EXHIBITS: EXT.P1TRUE COPY OF THE GO (P) NO.116/2004/TD DATED 17.7.2004. EXT.P2TRUE COPY OF THE ORDER DATED 29.3.2005 ISSUED BY THE APPELLATE ASSISTANT COMMISSIONER, ERNAKULAM FOR THE YEAR 1998 - 99. EXT.P3TRUE COPY OF THE ORDER DATED 29.3.2005 ISSUED BY THE APPELLATE ASSISTANT COMMISSIONER, ERNAKULAM FOR THE YEAR 1999 - 2000. EXT.P4TRUE COPY OF THE ORDER DATED 29.3.2005 ISSUED BY THE APPELLATE ASSISTANT COMMISSIONER, ERNAKULAM FOR THE YEAR 1999 - 2000. EXT.P5TRUE COPY OF THE NOTIFICATION SRO NO.377 OF 2005 NOTIFIED IN GO(P) NO.592005/TD DATED 19.4.2005. EXT.P6TRUE COPY OF THE INTERIM ORDER DATED 20.3.2006 IN W.P(C). NO.8204/2006 OF THIS HONOURABLE COURT. EXT.P7TRUE COPY OF THE DEMAND NOTICE DATED 12.6.2006 ISSUED BY THE SECOND RESPONDENT. EXT.P8TRUE COPY OF THE JUDGMENT IN W.A.NO.468/06 DATED 14.7.2006 OF THIS HONOURABLE COURT. RESPONDENTS' EXHIBITS: NIL. // TRUE COPY// PS TO JUDGE K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 16414 OF 2006 D -------------------------------------- Dated this the 23rd July, 2008 JUDGMENT Petitioner challenges Ext.P7. Ext.P7 is a revenue recovery notice, calling upon the petitioner to pay sales tax, surcharge and penal interest in a total sum of Rs.28,57,729/= for the assessment year 1998 - 1999. For the assessment 1998 - 1999, petitioner carried the matter in appeal against the assessment both under the KGST Act as also the CST Act. As far as the Appeal relating to KGST Act for the assessment year 1998 - 1999, going by Ext.P2 appellate order, the Appeal was allowed and the assessing authority was directed to allow exemption to the petitioner from sales tax under the KGST Act since the petitioner being a small scale industrial unit. Regarding Central Sales Tax, the petitioner's Appeal was dismissed. There is no dispute that Ext.P2 order has become final. If that be so, if Ext.P7 is understood as a demand for payment of sales tax under the KGST Act for the assessment year 1998 - 1999, Ext.P7 is WPC.16414/06 D 2 clearly unsustainable. Treating Ext.P7 as a notice to recover the amount due under the KGST Act with Surcharge and penal interest, Ext.P7 is quashed. However, I make it clear that this will not stand in the way of recovery of the amount due from the petitioner under the assessment under the CST Act for the assessment year 1998 - 1999, if the amount has already not been paid. The Writ Petition is disposed of as above. Sd/= K. M. JOSEPH, JUDGE kbk.