Moon Timber Suppliers vs Commercial Tax Officer

P.R. Ramachandra Menon, J.—The petitioner is aggrieved of Ext.P3 notice dated 25.5.2010, whereby the petitioner has been directed to satisfy a further sum of Rs. 7,21,082/- towards the tax payable within 24 hours; lest penal action under 67 should be initiated.

The petitioner, who is doing business in Plywood, Veneer, Packing Case and Timber, is a registered dealer under the KVAT Act, as borne by Ext.P1 certificate. The petitioner had filed return in respect of April 2010 belatedly, as borne by Ext.P2 acknowledgment issued by the concerned respondent. While so, the petitioner was served with Ext.P3 notice dated 25.5.2010 stating that the 2nd proviso to Section 12(1) of the KVAT Act was amended through the Finance Bill 2010 and as per the said amendment, the dealers in Plywood, Packing Case and Veneers were excluded from taking special rebate for the goods purchased u/s 6(2) and consumed or resold in the month itself.

The grievance of the petitioner is that the lapse on the part of the petitioner was due to an inadvertent mistake and that the time stipulated in Ext.P3 to have the liability satisfied ''within 24 hours'' is an unconscionable and arbitrary one. With regard to the contention of the petitioner is that the respondent is not issuing ''delivery notes'', the same is strongly rebutted from the part of the respondent, stating that there is absolutely no basis for such allegation and that sufficient delivery notes are being issued without any delay. The submission is recorded.

Considering the submissions made from either side and also taking note of the persuasive submission made by the learned Counsel for the petitioner that the only relief pressed for, is for some breathing time to clear the liability and that the petitioner does not have any challenge as to the merits, the petitioner is directed to clear the liability mentioned in Ext.P3 within ten days from today. It is made clear that, if the petitioner fails to satisfy the requirement as above, the respondent will be free to proceed with further steps for realisation of the due amount in a lump sum.

The Writ Petition is disposed of.