IN THE HIGH COURT OF KERALA AT ERNAKULAM
OP.No. 17597 of 2001(T)
1. CHEMICAL ENGG CORPORATION (P) LTD
... Petitioner
Vs
1. SALESTAX OFFICER
... Respondent
For Petitioner :SMT.S.K.DEVI
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :07/01/2008
O R D E R
C.N.RAMACHANDRAN NAIR, J.
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O.P.No. 17597 of 2001 (T)
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Dated this the 7th day of January, 2008
J U D G M E N T
The petitioner’s challenge is against levy of penalty, under
Section 45AA of the Kerala Sales Tax Act, for the year 1997-98.
Counsel for the petitioner contended that non payment of tax was
not deliberate because the petitioner was successfully contesting
demanded tax in appeals. However, Government Pleader,
Smt.Smitha Sukumaran submitted that penalty was levied on
account of chronic default. Even at this stage, it is not known
whether the tax with interest is paid by the petitioner and whether
the tax demand is sustained by the tribunal. However, it is stated
in the O.P that appeal against assessment is pending in tribunal for
1997-98. In the circumstances, I direct the first respondent to
verify the ultimate demand of tax sustained by the Tribunal and if
petitioner already remitted the entire tax with interest under
Section 23(3) of the K.G.S.T Act from the date of original demand,
penalty levied under Section 45AA of the K.G.S.T. Act shall stand
O.P.No.17597 of 2001 (T)
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reduced to Rs.25,000/- (Rupees twenty-five thousand only).
However, if the petitioner has not so far remitted the sustained
demand with interest, full penalty will stand sustained.
O.P is disposed of as above.
C.N.RAMACHANDRAN NAIR,
Judge
ms