2009 (11) TMI 940 - HC - VAT and Sales Tax

Summary

Issues involved: Condonation of delay in appeal, imposition of cost on the State, refund of penalty under Section 53(12) of the KVAT Act.

Condonation of Delay in Appeal: The appeal was filed with a delay of 33 days, seeking condonation in Misc. W.No. 9574/2009 along with an application for stay in Misc. W. No. 9575/2009.

Imposition of Cost on the State: The appeal by the state under Section 4 of Karnataka High Court Act, 1961, was against the order imposing a cost of Rs. 5,000 on the State, directing the revenue to refund a sum of Rs. 2,18,150 levied by way of penalty under Section 53(12) of the KVAT Act. The court found no justification for levying such cost on the Commissioner of Commissioner Taxes, as the Commissioner had responded to the notice issued by the Court.

Refund of Penalty under Section 53(12) of the KVAT Act: The petitioner in the writ petition was represented by a learned Counsel who argued that the cost imposed by the Single judge was justifiable and did not warrant interference in a writ appeal. The Court held that the levy of cost is within the discretion of the Court and unless there is an arbitrary action, interference is not warranted. The appeal was dismissed, along with the applications.

In conclusion, the Court dismissed the appeal and applications, stating that there was no unacceptable, arbitrary action in the order justifying interference.