M.V. IBRAHIM V. THE COMMERCIAL TAX OFFICER-1,

WP(C)/29440/2018

AI Insights

The case involves M.V. Ibrahim, the proprietor of M/s. Arafa Traders, who challenged the assessment proceedings under the Kerala Value Added Tax (KVAT) Act. The petitioner had filed a second appeal and petitions for stay before the Kerala Value Added Tax/Agricultural Income Tax and Sales Tax Appellate Tribunal, which were still pending. The Tribunal had issued an interim order requiring the petitioner to deposit 20% and furnish security for the balance amount. The petitioner, citing financial difficulties, requested additional time to comply with the Tribunal's directions. The High Court, while not interfering with the Tribunal's discretion, granted the petitioner additional time to comply by allowing the deposit in six monthly installments.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 726895 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-09-2018
• Assessment Year: misc
• Laws Referred To: KVAT Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: THUSHARA JAMES
• Assessee Lawyers: N NAIR
• Keywords: Assessment proceedings; Financial Difficulties; Interim order; KVAT Act; Pre-deposit; Security
• Section: 20

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU THURSDAY ,THE 06TH DAY OF SEPTEMBER 2018 / 15TH BHADRA, 1940 WP(C).No. 29440 of 2018 PETITIONER: M.V. IBRAHIM PROPRIETOR,M/S.ARAFA TRADERS P.O., SIVAPURAM, KANNUR. BY ADV. SRI. N. MURALEEDHARAN NAIR RESPONDENTS: 1 THE COMMERCIAL TAX OFFICER-1, DEPARTMENT OF COMMERCIAL TAXES, KUTHUPARAMBA KANNUR, DISTRICT-670643 2 THE KERALA VALUE ADDED TAX/AGRICULTURAL INCOME TAX AND SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH, KOZHIKODE-673006. 3 TAHSILDAR TALUK OFFICE, THALASSERY-670101. OTHER PRESENT: GP. DR. THUSHARA JAMES THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.09.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 29440 of 2018 2 JUDGMENT Assailing the assessment proceedings, the petitioner, a dealer under the KVAT Act, filed a second appeal, along with petitions for stay, before the 2nd respondent Tribunal. The appeal and petitions are pending with the 2nd respondent and no orders are passed. The petitioner suffered an interim order : to deposit 20% and furnish security for the balance amount. 2. After initially setting out the petitioner's financial difficulties, the learned counsel nevertheless pleads for some more time to comply with the directions of the 2nd respondent: the pre-deposit and security. 4. According to the petitioner's counsel, if the petitioner is given some breathing time, he will comply with the condition of pre-deposit. 5. Under these circumstances, I stress the obvious: this Court will not interfere with the discretion of the Tribunal in imposing any condition to sustain a stay, more particularly when that discretion has a statutory sanction. Nevertheless, given the persistent plea the petitioner's counsel advanced that the petitioner has been facing acute financial problems, this Court may take considerate view of the situation. 6. I, therefore, dispose of the writ petition holding that WP(C).No. 29440 of 2018 3 the petitioner shall deposit the amount, as the Tribunal directed, in six equal monthly instalments. On the other hand, if the petitioner fails to pay any two consecutive instalments within the stipulated time, the Tribunal can proceed without recourse to this Court. Sd/- DAMA SESHADRI NAIDU JUDGE APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT FOR THE YEAR 2012-13 DATED 03.01.2017. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 03.01.2017. EXHIBIT P3 TRUE COPY OF THE APPELLATE ORDER PASSED BY THE DEPUTY COMMISSIONER (APPEALS), SGST DEPARTMENT, KOZHIKODE, FOR THE YEAR 2012- 13 DATED 07.04.2018. EXHIBIT P4 TRUE COPY OF THE APPELLATE ORDER PASSED BY THE DEPUTY COMMISSIONER (APPEALS), SGST DEPARTMENT, KOZHIKODE, FOR THE YEAR 2013- 14 DATED 07.04.2018. EXHIBIT P5 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2012-13 DATED 28.5.2018 WP(C).No. 29440 of 2018 4 EXHIBIT P6 TRUE COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 28.5.2018 EXHIBIT P7 TRUE COPY OF THE PETITION FOR STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2012-13 DATED 28.5.2018 EXHIBIT P8 TRUE COPY OF THE PETITION FOR STAY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 28.5.2018 EXHIBIT P9 TRUE COPY OF THE STAY ORDER PASSED BY 2ND RESPONDENT FOR THE YEAR 2012-13 DATED 07- 08-2018 EXHIBIT P10 TRUE COPY OF THE STAY ORDER PASSED BY 2ND RESPONDENT FOR THE YEAR 2013-14 DATED 07- 08-2018 EXHIBIT P11 TRUE COPY OF THE DEMAND NOTICE IN FORM NO.IV ISSUED BY 1ST RESPONDENT FOR THE YEAR 2012-13 DATED 5.1.2017. EXHIBIT P12 TRUE COPY OF THE DEMAND NOTICE IN FORM NO.IV ISSUED BY 1ST RESPONDENT FOR THE YEAR 2013-14 DATED 5.1.2017. RESPONDENTS' EXHIBITS NIL // TRUE COPY // P.A. TO JUDGE SD "