This writ appeal challenged the interim order declining a stay regarding payment of tax under a compounding scheme in light of amendments to the Kerala Value Added Tax Act.
Interim order declining stay was not interfered with; claim for stay dismissed.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE C.N.RAMACHANDRAN NAIR & THE HON'BLE MR. JUSTICE BABU MATHEW P.JOSEPH
TUESDAY, THE 7TH DAY OF FEBRUARY 2012/18TH MAGHA 1933 WA.No. 188 of 2012 () IN WPC/33232/2011 ---------------------------------------AGAINST THE ORDER/JUDGMENT IN WPC.33232/2011 DATED 02/02/2012 APPELLANT(S)/ PETITIONER :
JOSCO JEWELLERS (P)LTD. ROOM NO.13, RAJIV GANDHI SHOPPING COMPLEX KOTTAYAM - 1, REPRESENTED BY ITS GENERAL MANAGER SABU THOMAS
BY ADVS.SRI.V.G.ARUN SRI.T.R.HARIKUMAR
RESPONDENT(S)/RESPONDENTS:
1. THE COMMERCIAL TAX OFFICER
2. THE SALES TAX COMMISSIONER
3. THE SECRETARY TAXES DEPARTMENT, GOVERNMENT OF KERALA, SECRETARIAT
4. STATE OF KERALA, REPRESENTED BY THE SECRETARY, FINANCE DEPARTMENT SECRETARIAT, TRIVANDRUM - 695 001.
BY SRI.SOJAN JAMES, GOVERNMENT PLEADER
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 07-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
C.N.RAMACHANDRAN NAIR, & BABU MATHEW P. JOSEPH, JJ.
Writ Appeal No.188 of 2012
.................................................................... Dated this the 7th day of January, 2012.
JUDGMENT
Ramachandran Nair, J.
Writ Appeal is filed against interim order declining to grant stay against payment of tax under the compounding scheme. The petitioner has challenged constitutional validity of the amendments introduced to the provisions of the Kerala Value Added Tax Act relating to payment of tax at compounded rate. The learned Single Judge declined to grant stay stating that challenge against constitutional validity is no ground to grant stay. Even though counsel for the appellant submitted that liability under the compounding scheme as it originally stood is increased on account of amendment introduced in July 2011, Special Government Pleader appearing for respondents submitted that compounding order is passed only in November and it is absolutely open to the appellant to withdraw from compounding and pay tax in accordance with the other provisions of the Act. i.e. on the turnover in accordance with law. We are in agreement with this contention
2
because compounding is an option and it is absolutely the choice of the appellant to remit tax under compounded scheme, if it is acceptable to them or otherwise, to pay tax in accordance with the statutory scheme
i.e. on the sales turnover. Consequently we decline to interfere with the
interim order declining stay. Writ Appeal is accordingly dismissed.
C.N.RAMACHANDRAN NAIR Judge
BABU MATHEW P. JOSEPH Judge
pms
3 issues framed by the court
Whether to grant stay against payment of tax under the compounding scheme pending challenge to the amendment's constitutional validity.
Whether the appellant is entitled to withdraw from the compounding scheme and pay tax under the statutory provisions.
Whether to interfere with the interim order declining to grant stay.
Josco Jewellers (P)Ltd.
The Commercial Tax Officer
The Sales Tax Commissioner
The Secretary Taxes Department, Government of Kerala
State of Kerala
C.N. Ramachandran Nair
Babu Mathew P. Joseph
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
