M/S. Michaels Hospitality v. The Commercial Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR TUESDAY, THE 15TH DAY OF DECEMBER 2015/24TH AGRAHAYANA, 1937 WP(C).No. 37907 of 2015 (K) ---------------------------- PETITIONER :

---------------------- M/S. MICHAELS HOSPITALITY PVT. LTD., HAVELI BACKWATER RESORTS, PUNNAMADA ROAD, ALAPPUZHA, REPRESENTED BY SHERRY JOSEPH, MANAGING DIRECTOR.

BY ADVS.SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT(S):

----------------------------

1. THE COMMERCIAL TAX OFFICER (LT), DEPARTMENT OF COMMERCIAL TAXES, ALAPPUZHA-688 001.

2. THE INTELLIGENCE OFFICER(IB), DEPARTMENT OF COMMERCIAL TAXES, ALAPPUZHA-688 001.

3. THE DEPUTY COMMISSIONER (APPEALS)-II, DEPARTMENT OF COMMERCIAL TAXES, KOLLAM-691 001 BY GOVERNMENT PLEADER SRI.R.RANJITH THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15-12-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

sts

WP(C).NO.37907/2015 APPENDIX PETITIONER'S EXHIBITS:

P1 COPY OF THE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2014-15 TO THE PETITIONER DATED 20/08/2015 P1(A) COPY OF THE ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2015-16 TO THE PETITIONER. DATED 21/08/2015 P2 COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 14/09/2015 P2(A) COPY OF THE APPEAL FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 14/09/2015 P3 COPY OF THE ORDER ISSUED BY THE 3RD RESPONDENT DATED 25/11/2015. RESPONDENT'S EXHIBITS:

NIL /TRUE COPY/ P.S.TO JUDGE sts

A.K.JAYASANKARAN NAMBIAR, J.

=========================================== W.P.(C). No. 37907 of 2015 ===================================================== Dated this the 15th day of December, 2015

JUDGMENT

The petitioner is an assessee under the Kerala Value Added Tax Act, 2003. Against Exts.P1 and P1(a) assessment orders for the assessment years 2014-2015 and 2015-2016, the petitioner had preferred Exts.P2 and P2(a) appeals before the 2nd respondent. The 2nd respondent has now passed Ext.P3 order directing the petitioner to pay 30% of the amount as a condition for the grant of stay against recovery of the balance amounts confirmed against the petitioner vide the assessment order.

2.

In the writ petition, the petitioner impugns the said conditional orders of stay, inter alia, on the ground that the 2nd respondent had not exercised his discretion validly while passing the said order.

3.

I have heard the learned counsel appearing for the petitioner as also the learned Government Pleader appearing for the respondents.

4.

On a consideration of the facts and circumstances of the case and the submissions made across the bar, I dispose the writ

-2W.P.(C). No. 37907 of 2015 petition with the following directions:- (i) In Ext.P3 order, the 2nd respondent does not state reasons as to why the petitioner was required to deposit the amounts as a condition for the grant of stay. This Court has held in Archana Agencies v. Commercial Tax Officer [2014(2) KLT 715] that an authority considering a stay petition is bound to give reasons even while granting conditional stay.

(ii) Ext.P3 order is quashed and the 2nd respondent is directed to reconsider the matter and pass fresh orders in the stay petitions filed by the petitioner, within one month from the date of receipt of a copy of this judgment after affording an opportunity of hearing to the petitioner.

(iii) Recovery steps, initiated against the petitioner shall be kept in abeyance till such time as fresh orders are passed by the 2nd respondent, as directed above, and communicated to the petitioner.

Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE das /15.12.15