Kerala High Court
M/S. Paragon Steels (P) Limited vs The Assistant Commissioner (Assmt) on 27 November, 2015
Author: A.K.Jayasankaran Nambiar
Bench: A.K.Jayasankaran Nambiar
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
FRIDAY,THE 12TH DAY OF FEBRUARY 2016/23RD MAGHA, 1937
WP(C).No. 5392 of 2016 (Y)
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PETITIONER:
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M/S. PARAGON STEELS (P) LIMITED,
IV/512A, INDUSTRIAL DEVELOPMENT AREA,
KANJIKODE WEST, PALAKKAD,
REPRESENTED BY ITS AUTHORISED SIGNATORY
V.KARUNAKARAN NAIR.
BY ADVS.SRI.N.MURALEEDHARAN NAIR
SRI.V.K.SHAMUSUDHEEN
RESPONDENT(S):
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1. THE ASSISTANT COMMISSIONER (ASSMT),
SPECIAL CIRCLE,
DEPARTMENT OF COMMERCIAL TAXES,
PALAKKAD - 678 001.
2. THE DEPUTY COMMISSIONER (APPEALS),
DEPARTMENT OF COMMERCIAL TAXES,
ERNAKULAM - 682 015.
3. THE INSPECTING ASSISTANT COMMISSIONER,
DEPARTMENT OF COMMERCIAL TAXES,
PALAKKAD - 678 001.
BY GOVERNMENT PLEADER SMT.LILLY.K.T
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 12-02-2016, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
mbr/
WP(C).No. 5392 of 2016 (Y)
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APPENDIX
PETITIONER(S)' EXHIBITS:
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EXT.P1 - TRUE COPY OF THE ASSESSMENT ORDER PASSED BY
1ST RESPONDENT FOR THE YEAR 2012-13 DATED 27.11.2015.
EXT.P2 - TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE
2ND RESPONDENT DATED 31.12.2015.
EXT.P3 - TRUE COPY OF THE STAY PETITION FILED BY THE PETITIONER
BEFORE THE 2ND RESPONDENT DATED 31.12.2015.
EXT.P4 - TRUE COPY OF THE INTERIM ORDER PASSED BY 2ND RESPONDENT
FOR THE YEAR 2012-13 DATED 19.01.2016.
EXT.P5 - TRUE COPY OF THE DEMAND NOTICE UNDER SECTION 7 OF THE
REVENUE RECOVERY ACT ISSUED BY 3RD RESPONDENT FOR THE
YEAR 2012-13 DATED 01.01.2016.
RESPONDENT(S)' EXHIBITS: NIL
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//TRUE COPY//
P.S.TO JUDGE
mbr/
A.K.JAYASANKARAN NAMBIAR, J.
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W.P.(C). No. 5392 of 2016
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Dated this the 12th day of February, 2016
JUDGMENT
The petitioner is an assessee under the Kerala Value Added Tax Act, 2003. Against Ext.P1 assessment order for the assessment year 2012-2013, the petitioner had preferred Ext.P2 appeal before the 2nd respondent. Along with the appeal, the petitioner had also preferred Ext.P3 stay petition. The 2nd respondent has now passed Ext.P4 order directing the petitioner to pay 30% of the amount as a condition for the grant of stay against recovery of the balance amounts confirmed against the petitioner vide the assessment order.
2. In the writ petition, the petitioner impugns the said conditional orders of stay, inter alia, on the ground that the 2nd respondent had not exercised his discretion validly while passing the said order.
3. I have heard the learned counsel appearing for the petitioner as also the learned Government Pleader appearing for the respondents.
-2- W.P.(C). No. 5392 of 2016
4. On a consideration of the facts and circumstances of the case and the submissions made across the bar, I dispose the writ petition with the following directions:-
(i) In Ext.P4 order, the 2nd respondent does not state reasons as to why the petitioner was required to deposit the amounts as a condition for the grant of stay. This Court has held in Archana Agencies v. Commercial Tax Officer [2014(2) KLT 715] that an authority considering a stay petition is bound to give reasons even while granting conditional stay.
(ii) Ext.P4 order is quashed and the 2nd respondent is directed to reconsider the matter and pass fresh orders in the stay petitions filed by the petitioner, within one month from the date of receipt of a copy of this judgment after affording an opportunity of hearing to the petitioner.
(iii) Recovery steps, initiated against the petitioner shall be kept in abeyance till such time as fresh orders are passed by the 2nd respondent, as directed above, and communicated to the petitioner.
Sd/-
A.K.JAYASANKARAN NAMBIAR JUDGE das /12.02.2016