M/S.TREND TEXTILES LTD, REPRESENTED BY ITS DIRECTOR, SEBASTIAN CHOKKATTU V. THE KERALA AGRICULTURAL INCOME TAX AND SALES APPELLAE TRIBUNAL

WP(C)/26067/2017

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M/S Trend Textiles Ltd, represented by its director, Sebastian Chokkattu, filed a writ petition against the Kerala Agricultural Income Tax and Sales Appellate Tribunal and other officials, challenging a conditional stay order (Ext.P5) related to a tax demand under the Kerala Value Added Tax Act (KVAT Act). The dispute centered on the petitioner's failure to produce necessary documents to prove that certain sales were exports and thus not taxable. The tribunal had considered the petitioner's financial hardship and allowed a stay on the recovery of the tax demand, provided 30% of the demand was paid. The High Court of Kerala dismissed the writ petition, agreeing with the tribunal's decision and extending the deadline for the payment of the 30% due.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 755414 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 07-08-2017
• Assessment Year: misc
• Other Referred Cases: Writ Petition 11047/2004
• Laws Referred To: Kerala Value Added Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: SHAMSUDHEEN
• Assessee Lawyers: K MOHANAKANNAN; A R PRAVITHA
• Keywords: Conditional order of stay; Export sales; Financial hardship; Non-production of books of accounts
• Section: 226

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR MONDAY, THE 7TH DAY OF AUGUST 2017/16TH SRAVANA, 1939 WP(C).No. 26067 of 2017 (G) ---------------------------- PETITIONER: ----------- M/S.TREND TEXTILES LTD, REPRESENTED BY ITS DIRECTOR, SEBASTIAN CHOKKATTU IA, SUMMER CASTLE APARTMENTS, DESOM.P.O., ALUVA.683 101. BY ADVS.SRI.K.MOHANAKANNAN SMT.A.R.PRAVITHA RESPONDENT(S): -------------- 1. THE KERALA AGRICULTURAL INCOME TAX AND SALES APPELLAE TRIBUNAL ERNAKULAM-682 031, REPRESENTED BY ITS CHAIRMAN. 2. THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (APPEALS), THEVARA, ERNAKULAM.682 013. 3. THE ASST. COMMISSIONER, COMMERCIAL TAXES, SPECIAL CIRCLE-III, ERNAKULM.682 031. BY GOVERNMENT PLEADER SRI SHAMSUDHEEN.V.K THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07-08-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.V. WP(C).No. 26067 of 2017 (G) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- EXHIBIT P1 TRUE COPY OF THE JUDGMENT DATED 1.12.2010 IN WRIT PETITION 11047/2004. EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER ISSUED BY THE 3RD RESPONDENT DATED 27.7.2010. EXHIBIT P3 TRUE COPY OF THE ORDER DATED 27.11.2015 IN APPEAL NO.STA 470/2010 PASSED BY THE DEPUTY COMMISSIONER (APPEALS). EXHIBIT P4 TRUE COPY OF THE APPEAL TA 19/2016 LEAVING OUT THE ANNEXURES PENDING BEFORE THE 1ST RESPONDENT. EXHIBIT P5 TRUE COPY OF THE ORDER IN INT.P NO.20/2016 IN TA NO.19/2016. RESPONDENT(S)' EXHIBITS NIL ----------------------- /TRUE COPY/ P.S.TO JUDGE K.V. A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.26067 Of 2017 -(G ) ............................................................. Dated this the 7th day of August, 2017 J U D G M E N T The petitioner has approached this Court aggrieved by Ext.P5 conditional order of stay passed by the appellate tribunal in a stay application filed along with an appeal against the 1st appellate order under the Kerala Value Added Tax Act (hereinafter referred to as the 'KVAT Act'). Although various contentions are raised in the writ petition in its challenge against Ext.P5 order, I find from a perusal of Ext.P5 order, as also Ext.P3 order impugned before the appellate tribunal in the appeal, that the confirmation of demand under the KVAT Act against the petitioner is essentially on account of the non-production, by the petitioner, of books of accounts and documents to substantiate its case that there were export sales effected, which would not attract the levy of tax. It is not in dispute that even before the appellate tribunal, the petitioner did not produce any material to substantiate its case with regard to export sale, on merits. It is taking note of the plea of financial hardship -2- W.P.(C).No.26067 Of 2017 -(G ) urged on behalf of the petitioner that the tribunal deemed it sufficient for the petitioner to remit only 30% of the confirmed demand against it, as a condition for grant of stay of recovery of the balance, pending disposal of the appeal. In the absence of any documents produced by the petitioner to substantiate its case on merits, and in view of the fact that the financial condition of the petitioner was taken into account by the Tribunal while passing Ext.P5 order, I do not find Ext.P5 order to be vitiated in any manner for the purposes of interfering with the same in these proceedings under Article 226 of the Constitution of India. The writ petition in its challenge against the same is therefore dismissed. Taking note of the plea of financial hardship urged on behalf of the petitioner, I deem it appropriate to extend the time granted to the petitioner, in Ext.P5 order, for effecting payment of 30% of the dues, till 15.09.2017. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns/07.08.17 -3- W.P.(C).No.26067 Of 2017 -(G ) "