The assessment was finalised in the case of the petitioner for the years 2008-09 to 2009-10 as per Exts.P4 & P5 orders passed by the 2nd respondent on 24.07.2014. The petitioner had moved the Appellate authority by way of Exts.P6 & P7 'Memorandum of Appeals'. After considering the I.A. for stay, the Appellate authority passed Ext.P8 order dated 17.11.2014, directing the petitioner to satisfy 30% of the disputed liability so as to avail the benefit of interim stay during pendency of the appeals, which in turn is under challenge in this writ petition.
2. The case of the petitioner is that, it is a Unit of Khadi Board and most of the goods dealt with by the petitioner are fully exempted as they come under the first schedule. Few items come under the second schedule with a tax liability of 1%, whereas some other items are to be mulcted with tax at higher rate of 12.5%. The assessing authority finalised the assessment applying higher rate of tax in respect of all items, for non- production of 'Audited Statement of Accounts' to be issued by the WP(c). No.32313 of 2014 2 Chartered Accountant in terms of Section 42 of the KVAT Act. According to the petitioner, the audit is being conducted in the establishment by the 'Audit Wing of Khadi and Village Industries Board'. This being the position, the petitioner has to produce only a Form 13 Certificate also giving the particulars in Form 13A. Since the audit was not completed, the petitioner was not in a position to produce Form 13/Form 13A. However, on completion of the audit, such documents have been subsequently produced, copies of which have been marked as Ext.P2, P2(a), P2(b) & P2(c) along with the writ petition. The factual particulars in this regard were omitted to be considered by the Appellate authority while passing Ext.P8 order and hence the writ petition.
3. The learned counsel for the petitioner points out that, under similar circumstances, absolute stay has been granted by a Division Bench of this Court vide Ext.P9 order in W.A. No.66/2013.
4. Heard the learned Government Pleader as well.
5. In view of the fact that a Division Bench of this Court has granted absolute stay during pendency of the appeal vide Ext.P9, this Court finds that the petitioner is also entitled to have similar benefits. Accordingly, there will be a direction to the 3rd WP(c). No.32313 of 2014 3 respondent to consider and pass final orders on Exts.P6 & P7 appeals, in accordance with law, as expeditiously as possible, at any rate within '4 months' from the date of receipt of a copy of this judgment.
6. Coercive proceedings, if any, shall be kept in abeyance till such time. The direction given to the Appellate authority vide Ext.P9 will stand modified to the said extent.
7. The writ petition is disposed of.
The petitioner shall produce a copy of this judgment along with a copy of the writ petition before the 3rd respondent for further steps.
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P.R. RAMACHANDRA MENON, JUDGE.
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