{"id":37566,"date":"2008-08-05T00:00:00","date_gmt":"2008-08-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/tojo-mathew-vs-the-deputy-commissioner-appeal-on-5-august-2008"},"modified":"2018-09-03T14:48:26","modified_gmt":"2018-09-03T09:18:26","slug":"tojo-mathew-vs-the-deputy-commissioner-appeal-on-5-august-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/tojo-mathew-vs-the-deputy-commissioner-appeal-on-5-august-2008","title":{"rendered":"Tojo Mathew vs The Deputy Commissioner Appeal on 5 August, 2008"},"content":{"rendered":"
Kerala High Court<\/div>\n
Tojo Mathew vs The Deputy Commissioner Appeal on 5 August, 2008<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA.No. 1604 of 2008()\n\n\n1. TOJO MATHEW, AGED 35, S\/O. MATHEW,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE DEPUTY COMMISSIONER APPEAL,\n                       ...       Respondent\n\n2. THE COMMERCIAL TAX OFFICER,\n\n3. THE STATE OF KERALA,\n\n4. THE INSPECTING ASSISTANT COMMISSIONER,\n\n                For Petitioner  :SRI.G.SREEKUMAR (CHELUR)\n\n                For Respondent  : No Appearance\n\nThe Hon'ble the Chief Justice MR.H.L.DATTU\nThe Hon'ble MR. Justice A.K.BASHEER\n\n Dated :05\/08\/2008\n\n O R D E R\n                   H.L.DATTU, C.J. & A.K.BASHEER, J.\n                         -------------------------------------------\n                             W.A.No.1604 of 2008\n                         ------------------------------------------\n                    Dated, this the 5th day of August, 2008\n\n                                  JUDGMENT\n<\/pre>\n
H.L.Dattu, C.J.\n<\/p>\n
              This writ appeal is directed against the order passed by the<\/p>\n
learned Single Judge in W.P.(C) No.14246 of 2008 dated 26.5.2008. By the<\/p>\n
impugned order, the learned Single Judge has sustained the interlocutory<\/p>\n
order passed by the first appellate authority dated 19.3.2008.<\/p>\n
       2. The impugned order passed by the first appellate authority on the<\/p>\n
interlocutory application filed by the assessee along with the memorandum of<\/p>\n
appeal reads as under:-\n<\/p>\n
              “This appeal is filed by M\/s. Hi mech Vending Services,<\/p>\n
       Civil Lines Road, Ayyanthole, Thrissur and is directed against<\/p>\n
       the orders of assessment under section 24(1) of the KVAT Act,<\/p>\n
       2003 passed by the Commercial Tax Officer (A.A.),<\/p>\n
       Commercial Taxes, Thrissur for the year 2005-06.<\/p><\/blockquote>\n
              Appellant filed petition for stay and as per orders of the<\/p>\n
       Hon’ble High Court of Kerala in WP(C) No.36357\/2007<\/p>\n
       dt.10.12.2007 stay petition was posted for hearing. When the<\/p>\n
       case was posted for hearing Sri.S.Ramakrishnan, Sales Tax<\/p>\n
       Practitioner appeared and heard. It was contended that the<\/p>\n
       assessing authority went wrong in levying 12.5% tax on the<\/p>\n
       sales of Tea making machine and premix as against 4% tax<\/p>\n
       disclosed.   The monthly addition made by the assessing<\/p>\n
W.A.No.1604 of 2008<\/p>\n
                                          2<\/span><\/p>\n
       authority was also unwarranted and excessive.<\/p>\n
              Examination of the contentions and verification of the<\/p>\n
       records revealed     that there is a prima facie case for<\/p>\n
       granting conditional stay and hence the following orders:-<\/p>\n
       Order No.S.P.162\/08 in KVATA 1721\/2007 dated 19.3.2008.<\/p>\n
             Collection of Balance demand for the year 2005-06<\/p>\n
      under KVAT Act is stayed till the disposal of appeal on<\/p>\n
      condition that the petitioner remits 50% (Fifty percent) of<\/p>\n
      the Balance amount due on or before 28.3.2008 and furnish<\/p>\n
      security before the assessing authority       for the balance<\/p>\n
      amount to the satisfaction of the assessing authority within<\/p>\n
      One month from receipt of this order .\n<\/p>\n
             If the conditions are not fulfilled the stay order<\/p>\n
      passed will stand vacated automatically”.\n<\/p>\n
       3. We have heard Sri.Sreekumar.G.(Chelur), learned counsel for<\/p>\n
the assessee and Sri.Muhammed Rafiq, learned counsel for the revenue.<\/p>\n
       4. The assessee being aggrieved by the order passed by the<\/p>\n
assessing authority for the assessment year 2005-06 has filed the first<\/p>\n
appeal before the first appellate authority as provided in the statute. Along<\/p>\n
with the appeal, the assessee has also filed an application for grant of<\/p>\n
interim stay of the order passed by the assessing authority and the demand<\/p>\n
notice issued pursuant thereto.\n<\/p>\n
W.A.No.1604 of 2008<\/p>\n
                                           3<\/span><\/p>\n
       5. The first appellate authority while considering the application<\/p>\n
filed by the assessee, has directed the assessee to deposit 50% of the tax<\/p>\n
payable and to furnish security for the balance amount to the satisfaction<\/p>\n
of the assessing authority.\n<\/p>\n
       6. We were not interfering with the discretionary order passed by<\/p>\n
the first appellate authority though at times we felt that the appellate<\/p>\n
authorities are not justified in signing the “Tailor made order”. The reason<\/p>\n
was, that, the Sales Tax Act is an indirect tax and the assessee is expected<\/p>\n
to collect the tax as provided in        the Schedule to the Act from the<\/p>\n
purchasers and remit it to the State Government within the time prescribed<\/p>\n
under the Act and the Rules framed thereunder. We had also kept in our<\/p>\n
view, that, the State’s economy which primarily depends on the sales tax<\/p>\n
collections, which is required for the developmental activities of the State<\/p>\n
though on       several. occasions, we had orally directed the learned<\/p>\n
Government Advocate to inform the appellate authority to pass a reasoned<\/p>\n
order while considering the interlocutory application filed by the assessee.<\/p>\n
To say the least, the things have not improved. Therefore, we have no<\/p>\n
other alternative, but to interfere with the mechanical orders passed by the<\/p>\n
first appellate authorities.\n<\/p>\n
       7. In the instant case, a perusal of the order passed by the first<\/p>\n
W.A.No.1604 of 2008<\/p>\n
                                          4<\/span><\/p>\n
appellate authority while considering the interlocutory application filed by<\/p>\n
the assessee would only show, that, it has narrated the facts and arguments<\/p>\n
advanced by the assessee’s representative and without expressing its<\/p>\n
tentative opinion on the controversy involved in the case, has disposed of<\/p>\n
the application in a cursory manner only by saying: “Examination of the<\/p>\n
contentions and verification of the records revealed that there is prima<\/p>\n
facie case for granting conditional stay and hence the following orders”.<\/p>\n
       8.   In our considered view, the first appellate authority while<\/p>\n
considering the interlocutory application filed along with the memorandum<\/p>\n
of appeal, should apply its mind to the facts of the case and pass a<\/p>\n
reasoned order.    When we say this, we do not mean that elaborate<\/p>\n
consideration on each one of the issues raised in the memorandum of<\/p>\n
appeal. The first appellate authority is expected to express his tentative<\/p>\n
opinion, why the assessee is entitled for only conditional stay and why not<\/p>\n
absolute stay. If this consideration is not reflected in the order itself, the<\/p>\n
only inference that the superior forum would draw is, that, there is total<\/p>\n
non-application of mind by the first appellate authority while considering<\/p>\n
the application filed by the assessee. Therefore, it is incumbent upon the<\/p>\n
appellate authority to give reasons. The order as such must be a speaking<\/p>\n
order and the decision must be supported by reasons, so that the superior<\/p>\n
W.A.No.1604 of 2008<\/p>\n
                                        5<\/span><\/p>\n
court is assured that it is in accordance with law.       A laconic order<\/p>\n
unsupported by reasons cannot be upheld.\n<\/p>\n
      9. In view of the above, the assessee has to succeed. Accordingly,<\/p>\n
we allow the appeal and set aside the order passed by the learned Single<\/p>\n
Judge in the writ petition and the order passed by the first appellate<\/p>\n
authority in     Order No.S.P.162\/08       in KVATA 1721\/2007 dated<\/p>\n
19.3.2008. A direction is issued to the first appellate authority to restore<\/p>\n
the application filed by the assessee dated 29.10.2007 on its board and<\/p>\n
dispose of the same in accordance with law and in the light of the<\/p>\n
observations made by in the course of our order.<\/p>\n
                                                      (H.L.DATTU)
\n                                                    CHIEF JUSTICE<\/p>\n
                                                     (A.K.BASHEER)
\n                                                        JUDGE
\nvns\/dk<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Tojo Mathew vs The Deputy Commissioner Appeal on 5 August, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA.No. 1604 of 2008() 1. TOJO MATHEW, AGED 35, S\/O. MATHEW, … Petitioner Vs 1. THE DEPUTY COMMISSIONER APPEAL, … Respondent 2. THE COMMERCIAL TAX OFFICER, 3. THE STATE OF KERALA, 4. THE […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-37566","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nTojo Mathew vs The Deputy Commissioner Appeal on 5 August, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/tojo-mathew-vs-the-deputy-commissioner-appeal-on-5-august-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tojo Mathew vs The Deputy Commissioner Appeal on 5 August, 2008 - 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