PALM TREE HERITAGE V. COMMERCIAL TAX OFFICER (LUXURY TAXI)

OP (TAX)/7/2018

AI Insights

The case involves Palm Tree Heritage Odayam Beach, a petitioner, who contested a conditional order from the Kerala Value Added Tax/Agricultural Income Tax & Sales Tax Appellate Tribunal. The dispute arose from an inspection that led to the detection of suppression, for which the petitioner compounded the offense by paying the due tax and a compounding fee. However, the Assessing Officer imposed an additional amount for actual suppression and a further 15%. The Tribunal's decision to require a 30% payment to stay further recovery proceedings was challenged. The High Court upheld the Tribunal's decision but allowed the payment to be made in two installments, keeping further recovery in abeyance until the appeal's conclusion.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 693473 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-06-2018
• Assessment Year: misc
• Laws Referred To: Kerala Value Added Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: P P THAJUDDIN
• Assessee Lawyers: S KUMAR; M RAJAGOPAL
• Keywords: Assessment appeal; Compounding of Offence; Conditional Order; Suppression detected
• Section: 143(3)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON WEDNESDAY, THE 6TH DAY OF JUNE 2018 / 16TH JYAISHTA, 1940 OP (TAX).No. 7 of 2018 --------------------------- AGAINST ORDER OF KERALA VALUE ADDED TAX/AGRL.INCOME TAX & SALES TAX APPELLATE TRIBUNAL, BENCH, THIRUVANANTHAPURAM IN INTP.45/17 IN T.A. NOS.22/17 DATED 20.04.2018 PETITIONER: ----------- PALM TREE HERITAGE ODAYAM BEACH, VARKALA, THIRUVANANTHAPURAM DISTRICT, PIN - 695 141, REPRESENTED BY ITS PARTNER THILAKAN V.S. BY ADVS.SRI.S.ANIL KUMAR (TRIVANDRUM) SRI.M.RAJAGOPAL RESPONDENTS: ----------- 1. COMMERCIAL TAX OFFICER (LUXURY TAXI) TAX TOWERS, KARAMANA, THIRUVANANTHAPURAM, PIN -695 002 2. DEPUTY COMMISSIONER (APPEALS), COMMERCIAL TAXES, TAX TOWERS, KARAMANA, THIRUVANANTHAPURAM, PIN - 695 002. 3. KERALA VALUE ADDED TAX/AGRL. INCOME TAX & SALES TAX APPELLATE TRIBUNAL, ADDL. BENCH, SASTHAMANGALAM, THIRUVANANTHAPURA- 695 010, REPRESENTED BY ITS ASST. SECRETARY. R BY SR. GOVERNMENT PLEADER SRI P P THAJUDDIN THIS OP TAX HAVING COME UP FOR ADMISSION ON 06-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: OP (TAX).No. 7 of 2018 (Q) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1:- TRUE COPY OF THE ASSESSMENT ORDER DATED 30-09-2016 ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2013-14 EXHIBIT P2:- TRUE COPY OF THE ORDER DATED 03-01-2017 ISSUED BY THE 2ND RESPONDENT EXHIBIT P3:- TRUE COPY OF THE APPEAL FILED AGAINST EXT. P2 BEFORE THE 3RD RESPONDENT. EXHIBIT P4:- TRUE COPY OF THE APPLICATION FOR STAY FILED IN EXT. P3-APPEAL EXHIBIT P5:- TRUE COPY OF STAY ORDER DATED 20-04-2018 ISSUED BY THE 3RD RESPONDENT. RESPONDENTS EXHIBITS: NIL TRUE COPY P.A TO JUDGE K. VINOD CHANDRAN & ASHOK MENON, JJ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Original Petition (Taxes) No. 7 of 2018 - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 06th day of June, 2018 J U D G M E N T Vinod Chandran, J The petitioner assessee assailed the conditional order passed by the Tribunal in an appeal filed against the assessment. The petitioner's business premises was inspected and suppression detected. The petitioner compounded the offence and paid the tax due as also the compounding fee. The petitioner returned the suppression detected. But however, the Assessing Officer added a further amount as actual suppression and an additional 15%. In appeal, the petitioner was directed to pay 30% for keeping in abeyance further recovery proceedings. Considering the above circumstances, we are of the opinion that no further indulgence O.P(Tax) 7/2018 ::2:: can be permitted to the petitioner. We direct the petitioner to pay the 30% demand in two installments on 06.07.2018 and 06.08.2018. On satisfaction of the said amounts, the recovery shall be kept in abeyance till the appeal is disposed of . Original petition is disposed of. No costs. Sd/- K. Vinod Chandran, Judge Sd/- Ashok Menon, Judge jma "