2010 (10) TMI 1235 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment order u/s 25(1) of KVAT Act, rectification application, challenge to order rejecting rectification.

Assessment Order u/s 25(1) of KVAT Act:
The petitioner was issued Ext.P1 assessment order for the assessment year 2005-06 under Section 25(1) of the Kerala Value Added Tax Act, 2003. The petitioner appealed against Ext.P1, as shown in Ext.P3, and also filed an interlocutory application for stay (Ext.P4). The appeal and stay petition are pending before the 2nd respondent for consideration and disposal.

Rectification Application:
The petitioner filed Ext.P2 seeking rectification of certain defects in the Ext.P1 order. In a previous judgment (Ext.P7), the 1st respondent was directed to consider and decide on Ext.P2. Ext.P8, the subsequent order, rejected the rectification petition stating that the defects did not fall under Section 66 of the KVAT Act. However, Ext.P8 was found to lack proper consideration and reasoning, leading to the conclusion that it is not sustainable in the eye of the law.

Challenge to Order Rejecting Rectification:
In light of the deficiencies in Ext.P8, the writ petition was disposed of by quashing Ext.P8. The 1st respondent was directed to issue a fresh speaking order after giving the petitioner an opportunity to be heard. Additionally, the 2nd respondent was instructed to decide on the Ext.P4 stay petition within one month of receiving a copy of the judgment, while halting any further recovery steps based on Ext.P6 notice until the directed orders are issued by the respondents.