Raja And Raja vs The Sales Tax Officer on 9 January, 2008

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 30102 of 2004(H)


1. RAJA AND RAJA, TIMBER INDUSTRIES AND
                      ...  Petitioner

                        Vs



1. THE SALES TAX OFFICER, KODUNGALLUR
                       ...       Respondent

2. THE COMMISSIONER OF COMMERCIAL TAXES,

3. THE INSPECTING ASSISTANT COMMISSIONER

                For Petitioner  :SRI.K.J.MOHAMMED ANZAR

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR

 Dated :09/01/2008

 O R D E R
                   C.N.RAMACHANDRAN NAIR, J.
                        -------------------------
                     WP(C) No. 30102 of 2004
                    ---------------------------------
             Dated, this the 9th day of January, 2008

                           J U D G M E N T

Petitioner is challenging recovery proceedings for recovery of

arrears of tax, penalty and interest due under the KGST Act. The

main dispute is with regard to amount of penalty shown in Ext.P5

notice. Petitioner has produced Ext.P1 penalty order and contended

that the amount shown in RR notice is incorrect because the penalty

levied under Ext.P1 is only Rs.34,516/-. However, learned

Government Pleader submitted that besides the penalty levied

under Section 45A, another penalty of Rs.31,720/- is levied on

petitioner under Section 45AA of the KGST Act for non-payment of

arrears of tax and other amount due under the Act. I feel,

petitioner can be granted reduction of penalty demanded under

Section 45AA, provided, the arrears of tax and penalty levied under

Section 45A and interest thereon are paid within a reasonable time.

In the circumstances, this writ petition is disposed of granting time

to petitioner till 25/03/2008 to pay the arrears of tax and penalty

levied under 45A along with interest. If payment is made so, then

the penalty levied under Section 45AA will stand reduced to

Rs.5,000/- and the balance penalty will stand canceled. If

WP(C) No. 30102/2004
-2-

petitioner does not make payment as above, then entire amount

including full penalty levied under Section 45AA can be recovered

from petitioner. Similarly recovery of penalty levied under Section

45A will be subject to further orders in the statutory revision filed

by the petitioner or subsequent challenge thereon. I make it clear

that the right to challenge penalty levied under Section 45A is left

open and if any reduction is granted, the penalty remitted to that

extent will be refunded.

This writ petition is disposed of as above.

(C.N.RAMACHANDRAN NAIR, JUDGE)

jg