Failure to submit Documents on the Re-adjudication process under KVAT Act: Kerala HC dismisses petition and directs to appeal before Statutory authority [Read Order]

In a recent judgement, the Kerala High Court dismissed the writ petition and directed the appeal before the statutory authority as the order was passed without considering the document due to the failure of the assessee to submit on Re-adjudication process under the Kerala Value Added Tax (KVAT) Act,2003.

Hasbro Clothing Pvt. Ltd, the petitioner is a wholesale dealer in textiles and is an assessee under the KVAT and Central Sales Tax Act 1956 (CST Acts).  The petitioner, being aggrieved by the Assessment Orders, filed appeals before the 2nd respondent.  The 2nd respondent set aside the assessment orders vide orders and remanded the matter back to the files of the Assessing Authority for re-doing the process.  The petitioner was directed to produce the relevant documents before the Assessing Authority.  

The petitioner ought to have produced the relevant documents on his own, but he did not produce them.  As per the impugned orders, the petitioner was issued notices for producing the relevant documents, which he failed to produce.

In the absence of the relevant documents having been produced by the petitioner, the Assessing Authority has passed the impugned assessment orders afresh.  The petitioner approached the Court in the writ jurisdiction against the re-assessment orders.

Justice Dinesh Kumar Singh viewed that the writ petition is wholly misconceived and is not maintainable given the efficacious statutory remedy of appeal provided under the KVAT Act before the appellate authority.

The Court dismissed the petition and held that “However if the petitioner files appeals before the Appellate Authority within fifteen days from today against the impugned Assessment Orders, the Appellate Order shall proceed to decide the appeals on merit by the law without going into the question of delay if any.  For fifteen days, no coercive measures shall be taken in pursuance of the recovery notices.”

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