High Court Kerala High Court

M/S Varun Agro vs The Commissioner Of Commercial … on 18 June, 2008

Kerala High Court
M/S Varun Agro vs The Commissioner Of Commercial … on 18 June, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 15984 of 2008(C)


1. M/S VARUN AGRO, VI/1036A, SHAN COMPLEX,
                      ...  Petitioner

                        Vs



1. THE COMMISSIONER OF COMMERCIAL TAX
                       ...       Respondent

2. THE DEPUTY COMMISSIONER, COMMERCIAL

3. THE INTELLIGENCE OFFICER, SQUAD NO.II,

4. THE ASSISTANT COMMISSIONER (ASSESSMENT),

                For Petitioner  :SRI.C.K.THANU PILLAI

                For Respondent  : No Appearance

The Hon'ble MR. Justice K.M.JOSEPH

 Dated :18/06/2008

 O R D E R
                        K. M. JOSEPH, J.
                 --------------------------------------
                  W.P.C. NO. 15984 OF 2008 C
                  --------------------------------------
                 Dated this the 18th June, 2008

                            JUDGMENT

Petitioner challenges Ext.P7. By Ext.P7, the

Commissioner of Commercial Taxes has set aside the order

passed by the Deputy Commissioner of Commercial Taxes and

remanded the matter to the Intelligence Officer, Squad No.II,

Ernakulam for de novo disposal after verifying the facts.

2. Briefly put, the case of the petitioner is as follows:

A notice was issued proposing penalty against the

petitioner to which though objections were filed, penalty was

imposed by the third respondent. It came to be set aside by the

second respondent. It is the said order which was set aside by

the Commissioner of Commercial Taxes and remanded.

Petitioner is a partnership firm carrying on business in hill

produces at Mattanchery. Certain records were seized on an

inspection on 8.6.1999 and after examination of the

Accounts of the petitioner, the third respondent alleged that

WPC. 15984/08 C 2

the petitioner sold pepper for Rs.1,48,72,360/= to M/s. Varun

Impex Ltd., another registered dealer housed in the same

premises. It is the case of the Department that this was not

accounted and thus penalty followed. According to petitioner,

no sale took place on that day and there was no sale of the goods

and there was no evasion. It is, in fact, the case of the petitioner

that due to non-arrival of goods, there was no sale. Bills were

prepared and cancelled, as the sale did not materialise on that

day and delivery could not be made due to non-arrival of the

goods, is the petitioner’s case. The first respondent

Commissioner found in his order that the Revisional Authority

has not verified various aspects while disposing of the Revision

Petition. In the course of the order, the Commissioner while

setting aside the order and remanding the matter for de novo

consideration after verifying the aforesaid facts, made certain

observations. It is, inter alia, found that the argument of the

petitioner that the assessment for the relevant period was

completed, has no significance, as the last bill used by the

WPC. 15984/08 C 3

petitioner is Bill No.401 dated 31.3.1999, which was not

produced before the assessing authority for verifying the Books

of Account. There is no attestation found by the assessing

authority and it is, therefore, clear that the petitioner

intentionally avoided production of the bills before the assessing

authority, it is stated. It is the case of the petitioner that it is not

correct. It is also stated that the original is seen detached from

the bill book itself and no inscription is found cancelled in the

duplicate copy. He has also made reference to certain other

observations.

3. Since the matter is being remitted back for de novo

consideration, I think that the matter should be considered

untrammelled by the observations contained in Ext.P7.

Accordingly, while sustaining Ext.P7, it is ordered that when the

assessing authority takes up the matter after remand for

verification of the various aspects which was ordered, the

assessing authority will take a decision in accordance with law,

WPC. 15984/08 C 4

untrammelled by the observations contained in Ext.P7. I leave

open the contentions of the petitioner.

The Writ Petition is disposed of as above.

Sd/=
K. M. JOSEPH, JUDGE

kbk.

// True Copy//

PS to Judge