The Kerala High Court dismissed a writ petition citing gross delay as the penalty order passed under the Kerala Value Added Tax Act (KVAT Act), 2003 was challenged with a delay of 9 years.
The writ petition has been filed by M/s Shree Abirami Engineering Works, under Article 226 of the Constitution of India impugning the penalty order passed under the provisions of the Kerala Value Added Tax Act, 2003.
Section 67 of the Kerala Value Added Tax Act delas with imposition of penalty by the authorities.
Section 68(1) of the Kerala Value Added Tax Act states that where an assessee makes default in payment of tax or any other amount due under the Act within the time specified in the notice of demand, he shall, in addition to the tax or other amount in arrears and the amount of interest payable under sub-section (5) of section 31, be liable to pay, by way of penalty such amount and in the case of a continuing default, amount at such rate for every day during which the default continues, as the assessing authority may direct, so, however, that the total amount of penalty shall not exceed the amount of tax or other amount in arrears.
A Single Bench of Justice Dinesh Kumar Singh observed that “This Court does not find any ground to entertain such a belated petition, whereby the penalty order has been challenged before this Court.”
“This Court finds that the writ petition is not maintainable on the ground of gross delay and laches in filing this writ petition. Therefore, the writ petition is hereby dismissed” the Court concluded.
E.P Govindan, counsel appeared for the petitioner and Jasmin M.M, Government Pleader appeared for the respondents.
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