Jins Mathew V. The Agricultural Income Tax and Sales Tax Officer, Commercial Taxes, Kattappana and The Tahsildar, (Revenue Recovery), Nedumkandam

OP/10983/2003

AI Insights

The case involves Jins Mathew, the petitioner, challenging the recovery proceedings initiated for sales tax arrears against the previous owner of the property he purchased. The petitioner argued that he only acquired 2.5 acres of land from the defaulter, who owed taxes, whereas the demand for arrears covered 8.5 acres. The court examined the provisions under the KGST Act and the Revenue Recovery Act, which allow for the recovery of tax dues from properties transferred by a defaulter if a charge exists on them. The court ruled that the Tahsildar should verify the properties and claims before proceeding with any sales.

• Counselvise Citation: [2007] 140 COUNSELVISE.COM (IT) 793861 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-02-2007
• Assessment Year: misc
• Laws Referred To: KGST Act, RR Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: R BINDU
• Assessee Lawyers: T H AZEEZ
• Keywords: Charge on Property; Property Transfer; Revenue recovery; Sales tax recovery
• Section: 46; 44; 26A; 26B

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR TUESDAY, THE 6TH FEBRUARY 2007 / 17TH MAGHA 1928 OP.No. 10983 of 2003(G) ----------------------- PETITIONER: ------------ JINS MATHEW, KANAMUNDAYIL HOUSE, KADAMAKUZHY P.O., KATTAPPANA-685 515 BY ADV. SRI.T.H.ABDUL AZEEZ RESPONDENTS: ------------- 1. THE AGRICULTURAL INCOME TAX AND SALES TAX OFFICER, COMMERCIAL TAXES, KATTAPPANA. 2. THE TAHSILDAR, (REVENUE RECOVERY), NEDUMKANDAM. BY GOVERNMENT PLEADER – ADV. SMT. R.BINDU THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 06/02/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.No. 10983/2003 ORDER ON I.A.No 11952/2003 IN CMP NO. 18983/2003 IN O.P.No. 10983/2003 DISMISSED. 06/02/2007 SD/- (C.N.RAMACHANDRAN NAIR, JUDGE) ORDER ON CMP NO. 18983/2003 IN O.P.No. 10983/2003 DISMISSED. 06/02/2007 SD/- (C.N.RAMACHANDRAN NAIR, JUDGE) APPENDIX PETITIONER'S EXHIBITS EXT.P1 COPY OF SALE DEED NO.2477/1984 OF THE SUB-REGISTRAR'S OFFICE, KATTAPPANA. EXT.P2 COPY OF ENCUMBRANCE CERTIFICATE DATED 25/03/2003 ISSUED TO MR. CHUKKANANIKKAL JOSEPH. EXT.P2(a) COPY OF -DO- DATED 25/03/2003 ISSUED TO MR. PEROTH VARGHESE. EXT.P2(b) COPY OF -DO- DATED 25/03/2003 ISSUED TO MR. VELLARAVEETTIL RAJAMMA. EXT.P3 COPY OF NOTICE DATED 28/09/2002 ISSUED BY 1ST RESPONDENT TO THE PETITIONER. EXT.P4 COPY OF THE ASSESSEMENT ORDER FOR THE YEAR 79/80 ISSUED BY 1ST RESPONDENT TO SMT.SUBAIDA BEEVI DATED 09/03/87. EXT.P5 COPY OF NOTICE DATED 19/10/2002 ISSUED TO THE PETITIONER BY 1ST RESPONDENT. EXT.P6 COPY OF NOTICE DATED 13/11/2002 ISSUED BY 1ST RESONDENT TO THE PETITIONER. EXT.P7 COPY OF NOTICE DATED NIL ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. EXT.P8 COPY OF NOTICE UNDER FORUM NO.10 ISSUED BY 2ND RESPONDENT TO THE PETITIONER. // TRUE COPY // PA TO JUDGE jg C.N.RAMACHANDRAN NAIR, J. ----------------------------------- O.P. No. 10983 of 2003 ------------------------- Dated, this the 6th day of February, 2007 J U D G M E N T Petitioner is challenging recovery proceedings for recovery of arrears of sales tax dues from the previous owner of the property. The petitioner’s case is that he purchased only 2.5 acres of land from the defaulter, which the petitioner subsequently sold to three persons, but demand for arrears is for around 8.5 acres of land of the defaulter. Tax could be recovered from property transferred by the defaulter, if there is charge on such property as per statute. Secs. 26A and 26B of the KGST Act provides for charge on the properties of the defaulter for sales tax liability. Similarly, if notice is served under Sec. 44 of RR Act creates charge on property of the defaulter. Therefore, any subsequent transfer of property can be ignored and recovery can continue. Since the counter affidavit filed does not serve any purpose, I direct the Tahsildar to identify the property of the defaulter, consider validity of subsequent transfers and proceed for sale only after deciding the claim of petitioner and other claimants. If the petitioner O.P.No. 10983/2003 -Page numbers- files any claim before the Tahsildar under Sec. 46 of the RR Act, it will be disposed of before sale of such properties. If any other property is found as part of the defaulter’s property, it shall also be attached and sold, details of which will be furnished by the petitioner. (C.N.RAMACHANDRAN NAIR, JUDGE.) jg "