IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN WEDNESDAY, THE 8TH APRIL 2009 / 18TH CHAITHRA 1931 WA.No. 916 of 2009() -------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.10438/2009 Dated 03/04/2009 .................... APPELLANT/PETITIONER: -------------- F.H.NAZEER AHAMMED, S/O.HUSSAIN, PROPRIETOR, M/S.MALANAD ENTERPRISES, P.T.ROAD, BADAGARA, KOZHIKODE DISTRICT. BY ADV. SRI.E.P.GOVINDAN RESPONDENT(S): --------------- 1. COMMERCIAL TAX OFFICER, COMMERCIAL TAXES, VATAKARA, KOZHIKODE DIST. 2. STATE OF KERALA REP. BY SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, TRIVANDRUM. BY G.P. SRI.V.K.SHAMSUDEEN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 08/04/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... Writ Appeal No.916 of 2009 .................................................................... Dated this the 8th day of April, 2009. JUDGMENT Ramachandran Nair, J. Writ Appeal is filed against judgment of the learned Single Judge declining to interfere with the impugned order cancelling appellant's registration under the KVAT and CST Acts. Counsel for the appellant submitted that from 2007 onwards the items dealt with by the appellant are exempt from tax and therefore, continuation of registration will not affect the interest of Revenue. However, Government Pleader submitted that appellant is in arrears of tax of around Rs.25 lakhs and he has filed Insolvency Petition and so much so, he is not entitled to continue registration. Since appeal is maintainable against cancellation of registration, we are of the view that the learned Single Judge rightly relegated the appellant to statutory remedy. However, we feel the Assessing Officer should allow the appellant to retain registration pending disposal of appeal on appellant remitting rupees five lakhs (Rs.5 lakhs) towards arrears. The appellant is granted two weeks time 2 from now to remit the amount and to file appeal against cancellation of registration. However, renewal will take effect after payment. Besides this, the Assessing Officer or the recovery authority can attach movables and immovables of the appellant for recovery of arrears of tax. We, therefore, dispose of the Writ Appeal by directing the Assessing Officer to permit continuation of registration both under KVAT and CST Acts after appellant remits Rs.5 lakhs. So far as recovery is concerned, this judgment does not stand in the way of recovery during pendency of appeal. The assessing authority will ensure that appellant complies with all other formalities for continuation of registration, failing which renewal granted under this judgment can be withdrawn. Issue copy today itself. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms