JANATHA TRADING CO Vs. STATE OF KERALA

JUDGEMENT

(1.) Heard counsel appearing for the petitioners as well as Government Pleader for respondents. It is noticed that the reason for detention is that the goods under transporter is classified as an item for which tax is leviable @ 12.5%, whereas the documents accompanied revealed payment of tax @ 4% only.

(2.) It is contended by the petitioner that against the clarification issued by the Commissioner of Commercial Taxes, under sec. 94 of the KVAT Act, the petitioner had filed OTA.No.9/2010 before this court and an interim order was granted staying operation of the order of clarification, as early as on 15/7/2010. Therefore the petitioner could not be compelled to make payment of tax at higher rate, as long as the stay order is in force.

(3.) On the above basis, contention of the petitioner is that the action initiated under sec. 47 (2) of the KVAT Act is totally without jurisdiction and the same is liable to be quashed.