Ayyappan Nair Vs. Sales Tax Officer - Court Judgment

SooperKanoon Citationsooperkanoon.com/1142079
CourtKerala High Court
Decided OnMay-26-2014
JudgeHONOURABLE MR.JUSTICE K.VINOD CHANDRAN
AppellantAyyappan Nair
RespondentSales Tax Officer
Excerpt:
in the high court of kerala at ernakulam present: the honourable mr.justice k.vinod chandran monday,the26h day of may20145th jyaishta, 1936 wp(c).no. 10014 of 2009 (v) ---------------------------------------- petitioner: ------------------- ayyappan nair, s/o.velayudhan pillai, aged68 athira bhavan, moongottukonam, kattakada p.o. by advs.sri.s.v.premakumaran nair, sri.r.t.pradeep, sri.v.vijulal. respondents: ----------------------- 1. sales tax officer, neyyattinkara.2. deputy tahsildar, revenue recovery,neyyattinkara.3. village officer, kulathummal village, neyyattinkara.4. sugandhi, proprietrix, devi fancy & textiles, kattakkada. r1 to r3 by government pleader sri. liju stephen, r4 by advs.sri.p.raveendran pillai, smt.indira raveendran. this writ petition (civil) having been finally heard on2605-2014, the court on the same day delivered the following: prv. w.p.(c).no.10014/2009 - v: appendix petitioner's exhibits: ext.p.1: true copy of gift deed dtd. 26/02/1992. ext.p.2: true copy of receipt dtd. 02/08/07. ext.p.2a: true copy of receipt dtd. 04/09/07. ext.p.2b: true copy of receipt dtd. 03/10/07. ext.p.2c: true copy of receipt dtd. 03/11/07. ext.p.2d: true copy of receipt dtd. 05/12/07. ext.p.2e: true copy of receipt dtd. 05/01/08. ext.p.2f: true copy of receipt dtd. 11/02/08. ext.p.2g: true copy of receipt dtd. 23/04/08. ext.p.3: true copy of communication dtd. 26/09/2008 from tahsildar. ext.p.4: true copy of notice nil. date u/s7of the act. ext.p.5: true copy of notice dtd. nil u/s. 34 of the act. ext.p.6: true copy of representation dtd. 24/02/2008 before2d respondent. ext.p.7: true copy of representation dtd. 11/03/2009 before3d respondent. respondents' exhibits: ext.r4.(a): true copy of the licence dtd. 11/03/97 issued to r4 by the kattakkada grama panchayath. ext.r4.(b): true copy of the licence dtd. 04/12/97 issued to r4 by the kattakkada grama panchayath. ext.r4.(c): true copy of the judgment in o.p. no.35324 of2000dtd. 18/12/2000. //true copy// p.s. to judge. prv. k.vinod chandran, j.--------------------------------------- w.p.(c).no.10014 of 2009-v ---------------------------------------- dated this the 26th day of may, 2014 judgment the petitioner, who took registration under the kerala general sales tax, 1963 (for brevity "kgst act"), was conducting business in the name of "devi fancy and textiles" and "devi book stall". the petitioner's contention in the writ petition is that the business was transferred in the name of the 4th respondent, who is his daughter, at the time of her marriage. thereafter the business was conducted by the 4th respondent and her husband; and, hence, the petitioner has no liability. the petitioner also contends that in fact earlier a revenue recovery notice was issued, demanding an amount of rs.31,309/- which stood satisfied in instalments, by exhibit p2 series receipts. consequently, the attachment was lifted, as is evidenced by exhibit p3. the present recovery proceedings has been initiated without giving credit of the amounts paid as per exhibit p2 series receipts, is the alternate contention taken. wp(c).no.10014 of 2009 - 2 - 2. regarding the contention of satisfaction made as per exhibit p3, it is specifically urged by the state that exhibit p3 was with respect to the demand made on assessment completed for the year 1993-94. the present challenge is with respect to exhibits p4 and p5, revenue recovery notices, wherein an amount of rs.1,02,127/- is claimed, as the demand made pursuant to the assessments completed in the year 1987-88 and 1994-95 as also an order of penalty in the year 1993-94.3. the 4th respondent has filed a counter affidavit, admitting that the business has been released in her favour in the year 1997. however, with respect to the earlier years, it is the contention of the 4th respondent that the registration stood in the name of her father, the petitioner herein, and the liability is also of his.4. the state has also filed a counter affidavit, wherein it is stated that an amount of rs.55,190/- and collection charges of rs.2,822/- were with respect to a demand raised in another revenue recovery proceedings, numbered as wp(c).no.10014 of 2009 - 3 - rrc982000-01, of the assessment year 1993-94. the present recovery is stated to be on the assessment for the years 1987-88, 1994-95 and the penalty imposed for the year 1993-94.5. the petitioner also does not have a case that prior to the years in which the assessment has been completed and penalty imposed; the petitioner had complied with the statutory formalities for transfer of registration in the name of his daughter. exhibit p1, which is said to be a settlement made in the name of the 4th respondent, is of no consequence with respect to the liability under the kgst act. in such circumstance, the petitioner's contentions fail and the writ petition stands dismissed. the petitioner's contentions against the 4th respondent, his daughter, are left open.6. however, considering the plea made by the learned counsel for the petitioner regarding the impecunious circumstance of the petitioner, it is directed that if the petitioner approaches the revenue recovery authorities with a prayer for instalments, within a period of one month from the date of wp(c).no.10014 of 2009 - 4 - receipt of a copy of this judgment, the revenue recovery authorities shall issue a statement of accounts regarding the dues as on the date on which the petitioner approaches the authorities and the same shall be permitted to be settled in ten equal monthly instalments. on satisfaction of the said instalments, further claim of interest shall be raised for the period commencing from the date on which the order was passed and the same shall be satisfied on the next succeeding month. ordered accordingly. sd/- k.vinod chandran, judge vku. ( true copy )
Judgment:

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY,THE26H DAY OF MAY20145TH JYAISHTA, 1936 WP(C).No. 10014 of 2009 (V) ---------------------------------------- PETITIONER: ------------------- AYYAPPAN NAIR, S/O.VELAYUDHAN PILLAI, AGED68 ATHIRA BHAVAN, MOONGOTTUKONAM, KATTAKADA P.O. BY ADVS.SRI.S.V.PREMAKUMARAN NAIR, SRI.R.T.PRADEEP, SRI.V.VIJULAL. RESPONDENTS: ----------------------- 1. SALES TAX OFFICER, NEYYATTINKARA.

2. DEPUTY TAHSILDAR, REVENUE RECOVERY,NEYYATTINKARA.

3. VILLAGE OFFICER, KULATHUMMAL VILLAGE, NEYYATTINKARA.

4. SUGANDHI, PROPRIETRIX, DEVI FANCY & TEXTILES, KATTAKKADA. R1 TO R3 BY GOVERNMENT PLEADER SRI. LIJU STEPHEN, R4 BY ADVS.SRI.P.RAVEENDRAN PILLAI, SMT.INDIRA RAVEENDRAN. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON2605-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Prv. W.P.(C).NO.10014/2009 - V: APPENDIX PETITIONER'S EXHIBITS: EXT.P.1: TRUE COPY OF GIFT DEED DTD. 26/02/1992. EXT.P.2: TRUE COPY OF RECEIPT DTD. 02/08/07. EXT.P.2a: TRUE COPY OF RECEIPT DTD. 04/09/07. EXT.P.2b: TRUE COPY OF RECEIPT DTD. 03/10/07. EXT.P.2c: TRUE COPY OF RECEIPT DTD. 03/11/07. EXT.P.2d: TRUE COPY OF RECEIPT DTD. 05/12/07. EXT.P.2e: TRUE COPY OF RECEIPT DTD. 05/01/08. EXT.P.2f: TRUE COPY OF RECEIPT DTD. 11/02/08. EXT.P.2g: TRUE COPY OF RECEIPT DTD. 23/04/08. EXT.P.3: TRUE COPY OF COMMUNICATION DTD. 26/09/2008 FROM TAHSILDAR. EXT.P.4: TRUE COPY OF NOTICE NIL. DATE U/S7OF THE ACT. EXT.P.5: TRUE COPY OF NOTICE DTD. NIL U/S. 34 OF THE ACT. EXT.P.6: TRUE COPY OF REPRESENTATION DTD. 24/02/2008 BEFORE2D RESPONDENT. EXT.P.7: TRUE COPY OF REPRESENTATION DTD. 11/03/2009 BEFORE3D RESPONDENT. RESPONDENTS' EXHIBITS: EXT.R4.(a): TRUE COPY OF THE LICENCE DTD. 11/03/97 ISSUED TO R4 BY THE KATTAKKADA GRAMA PANCHAYATH. EXT.R4.(b): TRUE COPY OF THE LICENCE DTD. 04/12/97 ISSUED TO R4 BY THE KATTAKKADA GRAMA PANCHAYATH. EXT.R4.(c): TRUE COPY OF THE JUDGMENT

IN O.P. NO.35324 OF2000DTD. 18/12/2000. //TRUE COPY// P.S. TO JUDGE. Prv. K.Vinod Chandran, J.

--------------------------------------- W.P.(C).No.10014 of 2009-V ---------------------------------------- Dated this the 26th day of May, 2014 JUDGMENT

The petitioner, who took registration under the Kerala General Sales Tax, 1963 (for brevity "KGST Act"), was conducting business in the name of "Devi Fancy and Textiles" and "Devi Book Stall". The petitioner's contention in the writ petition is that the business was transferred in the name of the 4th respondent, who is his daughter, at the time of her marriage. Thereafter the business was conducted by the 4th respondent and her husband; and, hence, the petitioner has no liability. The petitioner also contends that in fact earlier a revenue recovery notice was issued, demanding an amount of Rs.31,309/- which stood satisfied in instalments, by Exhibit P2 series receipts. Consequently, the attachment was lifted, as is evidenced by Exhibit P3. The present recovery proceedings has been initiated without giving credit of the amounts paid as per Exhibit P2 series receipts, is the alternate contention taken. WP(C).No.10014 of 2009 - 2 - 2. Regarding the contention of satisfaction made as per Exhibit P3, it is specifically urged by the State that Exhibit P3 was with respect to the demand made on assessment completed for the year 1993-94. The present challenge is with respect to Exhibits P4 and P5, revenue recovery notices, wherein an amount of Rs.1,02,127/- is claimed, as the demand made pursuant to the assessments completed in the year 1987-88 and 1994-95 as also an order of penalty in the year 1993-94.

3. The 4th respondent has filed a counter affidavit, admitting that the business has been released in her favour in the year 1997. However, with respect to the earlier years, it is the contention of the 4th respondent that the registration stood in the name of her father, the petitioner herein, and the liability is also of his.

4. The State has also filed a counter affidavit, wherein it is stated that an amount of Rs.55,190/- and collection charges of Rs.2,822/- were with respect to a demand raised in another revenue recovery proceedings, numbered as WP(C).No.10014 of 2009 - 3 - RRC982000-01, of the assessment year 1993-94. The present recovery is stated to be on the assessment for the years 1987-88, 1994-95 and the penalty imposed for the year 1993-94.

5. The petitioner also does not have a case that prior to the years in which the assessment has been completed and penalty imposed; the petitioner had complied with the statutory formalities for transfer of registration in the name of his daughter. Exhibit P1, which is said to be a settlement made in the name of the 4th respondent, is of no consequence with respect to the liability under the KGST Act. In such circumstance, the petitioner's contentions fail and the writ petition stands dismissed. The petitioner's contentions against the 4th respondent, his daughter, are left open.

6. However, considering the plea made by the learned counsel for the petitioner regarding the impecunious circumstance of the petitioner, it is directed that if the petitioner approaches the revenue recovery authorities with a prayer for instalments, within a period of one month from the date of WP(C).No.10014 of 2009 - 4 - receipt of a copy of this judgment, the revenue recovery authorities shall issue a statement of accounts regarding the dues as on the date on which the petitioner approaches the authorities and the same shall be permitted to be settled in ten equal monthly instalments. On satisfaction of the said instalments, further claim of interest shall be raised for the period commencing from the date on which the order was passed and the same shall be satisfied on the next succeeding month. Ordered accordingly. Sd/- K.Vinod Chandran, Judge vku. ( true copy )