BABY ANTONY V. THE DEPUTY COMMISSIONER (APPEALS)

WP(C)/11494/2013

AI Insights

The case involves Baby Antony, the proprietrix of Envees Inn Bar, who contested the revenue recovery proceedings initiated by the tax authorities for the year 2007-08. The petitioner had filed an appeal against the tax assessment and was directed by the court to remit 1/3rd of the assessed amount and provide a solvency certificate as security for the balance. Although the petitioner complied with the monetary requirement, there was a delay in obtaining the solvency certificate, which led to the refusal of the second respondent to accept it. The court found the petitioner's reasons for the delay genuine and directed the second respondent to accept the solvency certificate if it met legal requirements and to halt further coercive actions until the appeal was resolved.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 693772 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-04-2013
• Assessment Year: misc
• Other Referred Cases: WPC No. 4885/2013
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SHOBA EAPEN
• Assessee Lawyers: K P SATHEESAN; M R JAYAPRASAD; P MOHANDAS; ANOOP NAIR
• Keywords: Revenue Recovery Proceedings; Solvency certificate; Stay Petition; Turn over tax
• Section: 7

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN TUESDAY, THE 30TH DAY OF APRIL 2013/10TH VAISAKHA 1935 WP(C).No. 11494 of 2013 (J) ---------------------------- PETITIONER : -------------------------- BABY ANTONY, PROPRIETRIX, ENVEES INN BAR, ERAMALLOOR, ALAPPUZHA DISTRICT. BY DR.K.P.SATHEESAN,SENIOR ADVOCATE ADVS.SRI.M.R.JAYAPRASAD SRI.P.MOHANDAS (ERNAKULAM) SRI.ANOOP.V.NAIR RESPONDENT(S): ---------------------------- 1. THE DEPUTY COMMISSIONER (APPEALS), AGRICULTURAL INCOME TAX AND COMMERCIAL TAX, KOLLAM-691 001. 2. THE COMMERCIAL TAX OFFICER, AGRICULTURAL INCOME TAX AND COMMERCIAL TAX, KUTHIYATHODU, ALAPUZHA DISTRICT, PIN-688 533. 3. THE DEPUTY TAHSILDAR (R.R), TALUK OFFICE, CHERTHALA, ALAPPUZHA DISTRICT-688 524. R1 TO R3 BY SR GOVERNMENT PLEADER SMT.SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30-04-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C).No. 11494 of 2013 (J) ------------------------------------------ APPENDIX PETITIONER'S EXHIBITS: ------------------------------------- EXT.P1 TRUE COPY OF THE ASSESSMENT ORDER PASSED BY THE 2ND RESPONDENT DATED 26-9-2012. EXT.P2 TRUE COPY OF THE DEMAND OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 27-9-2012. EXT.P3 TRUE COPY OF THE NOTICE UNDER SECTION 7 ISSUED BY THE 3RD RESPONDENT DATED 2-2-2013. EXT.P4 TRUE COPY OF THE DEMAND NOTICE CLAIMING AN AMOUNT OF RS. 4,02,509/- TOWARDS ARREARS OF TURN OVER TAX DATED 2-2-2013. EXT.P5 TRUE COPY OF THE MEMORANDUM OF APPEAL FILED BY THE PETITIONER BEFORE THE FIRST RESPONDENT DATED 11-2-2013. EXT.P6 TRUE CPY OF THE STAY PETITION FILED BY THE PETITIONER DATED 11-2-2013 EXT.P7 TRUE COPY OF THE JUDGMENT DATED 20-2-2013 IN WPC NO. 4885/2013 EXT.P8 TRUE COPY OF THE RECEIPT ISSUED BY THE TAHSILDAR, CHERTHALA DATED 6-3-2013. EXT.P9 TRUE COPY OF THE LETTER WRITTEN BY THE PETITIONER TO THE 2ND RESPONDENT DATED 6-3-2013. EXT.P10 TRUE COPY OF THE SOLVENCY CERTIFICATE ISSUED BY THE TAHSILDAR, KOCHI DATED 21-3-2013. EXT.P11 TRUE COPY OF THE LETTER NO. 32041877106/2007-08 DATED 19-3-2013 WRITTEN BY THE 2ND RESPONDENT TO THE 3RD RESPONDENT. EXT.P12 TRUE COPY OF THE LETTER COMMUNICATION NO. 32041877106/08 DATED 30-3-2013 GIVEN BY THE 2ND RESPONDENT. RESPONDENT(S)' EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) No.11494 of 2013 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 30th day of April, 2013 J U D G M E N T Heard the learned counsel for the petitioner as also the learned Government Pleader. The petitioner is an assessee in the rolls of the second respondent and was assessed to tax for the year 2007-08. Though the petitioner had filed an appeal, revenue recovery proceedings were initiated for satisfaction of the amounts demanded, against which the petitioner was before this Court. By Ext.P7 this court, taking note of the pendency of the appeal before the first appellate authority, stayed the demand subject to petitioner remitting 1/3rd of the amount due thereunder and furnishing security for the balance amounts in terms of the Rules. It is submitted that the petitioner deposited the 1/3rd amount within two weeks as directed by this Court. However, since, the rules provided for solvent sureties, it is submitted that there was some delay in getting the solvency certificate. In any event, the petitioner contends that the solvency certificate was issued on 21.3.2013, which was produced WPC.11494/2013 : 2 : before the second respondent, who refused to accept the same, since the same was not in compliance with Ext.P7 judgment. The petitioner's contention that he had difficulty in getting the solvency certificate, is a genuine factor, which, prevented him from production of the same within the time stipulated by this Court. In any event, the remittance as directed by this Court having been made within the time stipulated and the solvency certificate also having not been produced, though delayed, it is only appropriate that the second respondent considers the veracity of the solvency certificate and accept the same, if it is in accordance with the Rules. In such circumstance, the second respondent shall consider and accept the solvency certificate if the same is in accordance with law and the coercive proceedings shall also be kept in abeyance till the disposal of the appeal as directed in Ext.P7. On the solvency certificate being accepted the action of the official respondents in freezing the account shall be forthwith revoked. Writ petition is disposed of as above. Sd/- (K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge "