The Court modified the appellate authority's stay order under a tax appeal, directing the petitioner to remit 30% of tax dues excluding interest instead of the total outstanding demand and interest.
Stay order modified to require payment of 30% of tax dues excluding interest, to be paid within one month.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE
FRIDAY, THE 15TH DAY OF JULY 2016/24TH ASHADHA, 1938
WP(C).No. 23669 of 2016 (G)
PETITIONER:
M/S.EVM AUTOMOBILES P LTD., BUILDING NO.II-4C, OPPOSITE BTH SAROVARAM HOTEL NH BYEPASS, KANNADIKKADU, MARADU, REPRESENTED BY ITS MANAGING DIRECTOR MR. SABU JOHNY
BY ADV. SMT.K.LATHA
RESPONDENT(S):
BY GOVERNMENT PLEADER SMT.LILLY.K.T
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-07-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C).No. 23669 of 2016 (G)
APPENDIX
PETITIONER(S)' EXHIBITS:
EXHIBIT P1 : THE TRUE COPY OF THE ASSESSMENT ORDER FOR THE YEAR 2012-2013 ISSUED BY ASSISTANT COMMISSIONER, SPECIAL CIRCLE-III, ERNAKULAM TO THE PETITIONER DATED 31-03-2016. EXHIBIT P2 : THE TRUE COPY OF THE APPEAL IN FORM NO.29 ALONG WITH GROUND OF APPEAL FILED BY THE PETITIONER BEFORE THE SECOND RESPONDENT AGAINST THE P1, ASSESSMENT ORDER FOR THE YEAR 2012-2013. EXHIBIT P3 : THE TRUE COPY OF THE DEMAND NOTICE BASED ON THE P1 ASSESSMENT ORDERS FOR THE YEARS 2012-2013 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER DATED 31-03-2016. EXHIBIT P4 : THE TRUE COPY OF THE CONDITIONAL STAY ORDER NO.KVATA 1801/2016 DATED 30-06-2016 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER.
RESPONDENT(S)' EXHIBITS: NIL
//TRUE COPY//
P.S. TO JUDGE
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A.M. SHAFFIQUE, J.
------------------------------------- W.P.(C) No. 23669 of 2016
Dated this the 15th day of July, 2016
JUDGMENT
Petitioner challenges Ext.P4 by which the appellate authority had granted stay on condition of the petitioner remitting 30% of the demand.
of the contention urged by the petitioner had been considered.
W.P.(C) No. 23669 of 2016
petitioner will be liable to pay 30% of the interest amount as well. It is contended that if the principal liability is extinguished, there is no obligation to pay interest.
Having regard to the aforesaid submission, I am of the
view that some modification can be made in Ext.P4. Accordingly, this writ petition is disposed of as under:
(i) Instead of 30% of the total outstanding demand, the petitioner shall pay 30% of the tax dues excluding interest.
(ii) This shall be paid within a period of one month from
the date of receipt of a copy of this judgment.
Sd/A.M. SHAFFIQUE
JUDGE
Scl/15.07.2016
2 issues framed by the court
Whether the appellate authority's stay order requiring remittance of 30% of total demand (including interest) was sustainable.
Whether the petitioner's argument that interest liability vanishes if principal is discharged warrants modification of the stay order.
M/S. EVM AUTOMOBILES P LTD.
STATE OF KERALA
THE DEPUTY COMMISSIONER (APPEALS) II
THE INSPECTING ASSISTANT COMMISSIONER
A.M. SHAFFIQUE
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
