P.M. MOHAMMED RAFEEK Vs. STATE OF KERALA

JUDGEMENT

(1.) The question raised in both the connected revision cases is whether the Tribunal was justified in sustaining penalty at equal amount of tax for dishonour of cheques given towards payment of tax and consequent delay in payment of tax.

(2.) At admission stage of the revision cases, learned Government Pleader took notice and offered to argue the matter on merits. Accordingly we heard both sides and proceed to dispose of the revisions by this common judgment.

(3.) The petitioner is a dealer in coffee and pepper filing monthly returns and remitting tax thereon under the Kerala Value Added Tax Act (hereinafter referred to as, "the Act", for short). While the tax payable for February, 2009, was Rs. 99,648, the tax payable for March, 2009, was Rs. 1,14,241. The cheques given along with monthly returns towards payment of tax were dishonoured. However, strangely the assessing officer took nearly seven to eight months to notice the dishonour of cheques and consequent non-recovery of tax. The same is revealed from the fact that notice was issued to the petitioner only on October 26, 2009. As and when notice was received, the petitioner remitted the tax due for February and March, 2009, on February 22, 2010 with interest at 12 per cent per annum. The assessing officer however levied penalty under section 67 of the Act, which is for non-payment of tax along with monthly returns. All the appellate authorities including the Tribunal concurred with the exigibility to penalty, but the two appellate authorities modified the penalty orders, and under the Tribunal's orders penalty levied is equal to the amount of tax. It is against these orders of the Tribunal, the petitioner has filed these revision cases.