S. Sarath V. Union of India and The Principal Chief Commissioner of Income Tax, Kerala and The Principal Chief Commissioner of Income Tax, Inquiry Authority and The Director General of Income Tax (Inv) and the Inquiry Officer, Karnataka & Goa Region

OP (CAT)/59/2024

AI Insights

The case involves S. Sarath, a Tax Recovery Officer, who is facing both departmental and criminal proceedings on the same charges. The petitioner sought an interim order from the Central Administrative Tribunal (CAT) to stay the departmental proceedings, which was granted. The Union of India and other respondents contested this, but the High Court upheld the CAT's decision, emphasizing the potential for witness testimony to be influenced by the outcomes of the parallel proceedings. The court's decision to stay the departmental proceedings was influenced by the principle of avoiding dual proceedings on the same set of facts, which could lead to inconsistent outcomes.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808997 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-05-2024
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: T C KRISHNA; JOSE JOSEPH
• Assessee Lawyers: REKHA SOYA; D C C R; ELIZABETH JOSEPH; ROJIT ZACHARIAH; M R HARIRAJ
• Keywords: Compulsory retirement; Criminal Proceedings; Departmental inquiry; Interim order; Stay of Proceedings

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE AMIT RAWAL & THE HONOURABLE MR. JUSTICE EASWARAN S. THURSDAY, THE 23RD DAY OF MAY 2024 / 2ND JYAISHTA, 1946 OP (CAT) NO. 59 OF 2024 ORDER DATED 18.3.2024 IN MA NO.203 OF 2024 IN OA NO.180/13/2022 OF THE CENTRAL ADMINISTRATIVE TRIBUNAL, ERNAKULAM PETITIONER(S)/APPLICANT IN THE MA/APPLICANT IN THE OA: S. SARATH , AGED 50 YEARS SON OF SASIDHARAN PILLAI, TAX RECOVERY OFFICER, OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, C.R. BUILDING, I.S.PRESS ROAD, COCHIN-18 AND CHARGED OFFICER, RESIDING AT HOUSE NO 307, PTP NAGAR, THIRUVANANTHAPURAM, PIN – 695038 BY ADVS. REKHA VASUDEVAN SOYA D.C MAHESH C.R. ELIZABETH V.JOSEPH ROJIT ZACHARIAH M.R.HARIRAJ (SR.) RESPONDENT(S)/RESPONDENTS 1 TO 4 IN THE MA/ RESPONDENTS 1 TO 4 IN THE OA: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF TAXES, NEW DELHI, PIN – 110001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX , KERALA, 1ST FLOOR, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI, PIN – 682018 O.P.(CAT) No.59 of 2024 2 3 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX , INQUIRY AUTHORITY, FIRST FLOOR, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN - 682018 4 THE DIRECTOR GENERAL OF INCOME TAX (INV) AND THE INQUIRY OFFICER , KARNATAKA & GOA REGION, BENGALURU, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU, PIN – 560001 SRI T.C. KRISHNA, SR. CGC SRI JOSE JOSEPH SC IT THIS OP (CAT) HAVING COME UP FOR ADMISSION ON 23.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.(CAT) No.59 of 2024 3 AMIT RAWAL & EASWARAN S. , JJ. ------------------------- O.P.(CAT) No.59 of 2024 ----------------------------------- Dated this the 23rd day of May 2024 JUDGMENT AMIT RAWAL, J. The present petition is directed against the interim order dated 18.03.2024 passed in M.A. No.203 of 2024 in pending O.A. No.180/13/2022 before the Central Administrative Tribunal (for short, ‘the CAT’) whereby, the petitioner, during the pendency of the aforementioned O.A., has sought the indulgence of the CAT for grant of interim order qua proceedings in the departmental inquiry for, on the same charges, facing criminal proceedings; charge sheet has been filed and listed for prosecution witnesses. 2. There is a commonality among the witnesses. The charge sheet has referred to 31 witnesses. In the department proceedings, enquiry officer has already been appointed and the department sought the assistance of the enquiry officer for summoning of the witnesses. O.P.(CAT) No.59 of 2024 4 3. Mr. Haridas, learned Senior counsel assisted by Smt.Rekha Vasudevan, submitted that during the pendency of the O.A., subsequent event has taken place whereby the petitioner has been compulsorily retired. In fact entire departmental proceedings in such circumstances would stand vitiated. 4. On the other hand, learned counsel appearing on behalf of the respondents, Union of India submitted that he does not any information with regard to the set of witnesses; whether they would be identical in the criminal proceedings as well as in the departmental proceedings. Be that as it may. We are of the view that in case the departmental proceedings, in view of the supervening facts as noticed above is permitted to continue, there would be two ambiguities: The witnesses may improve upon evidence in case they have been subjected to cross examination in either of the proceedings. Nevertheless, as noticed, the petitioner who has already been compulsorily retired, would be at liberty to take appropriate legal procedure in the pending O.A. We thus confirm the interim order dated 20.3.2024 passed by this Court. O.P.(CAT) No.59 of 2024 5 O.P.(CAT) is disposed of. Till the pendency of O.A. No.180/13/2022, the departmental proceedings shall remain stayed. Sd/- AMIT RAWAL, JUDGE Sd/- EASWARAN S., JUDGE NS O.P.(CAT) No.59 of 2024 6 APPENDIX OF OP (CAT) 59/2024 PETITIONER ANNEXURES Annexure A1 TRUE COPY OF THE MEMORANDUM NO.F.NO.C 14011/46/2018-V DATED 30-10-2018 ISSUED TO THE APPLICANT BY THE 1ST RESPONDENT, WITH TRUE COPY OF THE ARTICLES OF CHARGES FRAMED AGAINST THE APPLICANT AND TRUE COPY OF THE STATEMENT OF THE IMPUTATION OF MISCONDUCT OR MISBEHAVIOR IN SUPPORT OF THE ARTICLES OF CHARGES Annexure A2 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE APPLICANT ON 02.03.2021 TO THE 3RD RESPONDENT Annexure A3 TRUE COPY OF THE DAILY ORDER-SHEET OF THE INQUIRY OFFICER DATED 02.03.2021 Annexure A4 TRUE COPY OF THE CIRCULAR F.NO.14010/3/2011-ADN.V DATED 24TH FEBRUARY 2011 ISSUED BY MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BORAD OF EXCISE AND CUSTOMNS Annexure A5 TRUE COPY OF THE FINAL REPORT FILED BY THE POLICE IN FIR NO.RC 17(A)/2015/CBI/KOCHI DATED 14.10.2015 BEFORE THE COURT OF SPECIAL JUDGE FOR CBI CASES, THIRUVANANTHAPURAM Annexure A6 TRUE COPY OF THE PROCEEDINGS SHEET IN CC NO.4/2018 ON THE FILE OF COURT OF SPECIAL JUDGE FOR CBI CASES, THIRUVANANTHAPURAM, DATED 22-02-2022 Annexure A7 TRUE COPY OF THE ORDER DATED 9.03.2022 OF THE DISCIPLINARY ENQUIRY AUTHORITY Annexure A8 TRUE COPY OF THE LIST OF WITNESSES FURNISHED BY THE DISCIPLINARY AUTHORITY FOR EXAMINATION ON MARCH 21 Annexure R1(A) TRUE COPY OF THE REPLY DATED 25.09.2019 SUBMITTED BY THE APPLICANT Annexure A9 TRUE COPY OF THE ORDER OF THIS HONORABLE TRIBUNAL IN M.A NO.207 OF 2022 IN OA NO.13 O.P.(CAT) No.59 of 2024 7 OF 2022 DATED 16.03.2022 Annexure A10 TRUE COPY OF THE JUDGMENT OF THE HONORABLE KERALA HIGH COURT IN OP CAT NO.21 OF 2022 DATED 18.03.2022 Annexure A11 TRUE COPY OF ANNEXURE III AND IV IN MEMORANDUM NO.F.NO.C-14011/46/2018-V DATED 30.10.2018 Annexure A12 TRUE COPY OF THE SCHEDULE OF EXAMINATION OF WITNESSES IN THE PRESENT DISCIPLINARY PROCEEDINGS TO BE HELD ON 08.06.2022 Annexure R1(B) TRUE COPY OF THE ACKNOWLEDGEMENT OF THE PROSECUTION DOCUMENTS BY THE APPLICANT ALONG WITH LETTER F.NO. 289/MISC?CC- TVM/2021-21 DATED 25.09.2020 Annexure R1(C) TRUE COPY OF THE ORDER F.NO.C- 14011/46/2018-V&L DATED 18.02.2020 APPOINTING THE INQUIRING AUTHORITY Annexure A13 TRUE COPY OF THE REPRESENTATION DATED 11.10.2022 SUBMITTED BY THE APPLICANT Annexure A14 TRUE COPY OF THE COURT CHARGES DATED 14.10.2019 IN CC NO. 4/2018 FILED AGAINST THE APPLICANT IN THE SPECIAL COURT (SPE? CBI) THIRUVANANTHAPURAM Annexure A15 TRUE COPY OF THE ORDER F NO. DIT(I&CI) KOCHI/VIG./2023-24 DATED 05.04.2023 ISSUED BY THE DIRECTOR OF INCOME TAX (I&CI), KOCHI Annexure A16 TRUE COPY OF THE REPRESENTATION DATED 26.02.2024 SUBMITTED BY THE APPLICANT TO THE HONOURABLE PRESIDENT OF INDIA Annexure A17 TRUE COPY OF THE SET OF SUMMONS ISSUED TO THE WITNESSES BY THE ADDITIONAL 4TH RESPONDENT ON 21.2.2024 Annexure A18 TRUE COPY OF THE REPRESENTATION DATED 28.02.2024 SUBMITTED BY THE APPLICANT TO THE ADDITIONAL 4TH RESPONDENT (SOUGHT TO BE IMPLEADED) Exhibit P1 TRUE COPY OF THE AMENDED ORIGINAL APPLICATION (OA NO 180/00013/2022) FILED ON 4.1.2022 BY THE PETITIONER ALONG WITH O.P.(CAT) No.59 of 2024 8 THE ANNEXURES Exhibit P2 TRUE COPY OF THE SHORT REPLY STATEMENT DATED 25.1.2022 FILED BY THE RESPONDENTS 1 TO 3 ON THE QUESTION OF INTERIM RELIEF Exhibit P3 TRUE COPY OF THE M A NO.207 OF 2022 IN OA NO. 13 OF 2022 ON THE FILES OF THE HONOURABLE TRIBUNAL ON 14.3.2022 Exhibit P4 TRUE COPY OF THE REPLY STATEMENT DATED 29.3.2022 FILED BY THE RESPONDENTS 1 TO 3 IN EXHIBIT P1 OA Exhibit P5 TRUE COPY OF THE MA NO. 409 OF 2022 DATED 3.6.2022 IN OA NO. 13 OF 2022 ON THE FILES OF THE HONOURABLE TRIBUNAL Exhibit P6 TRUE COPY OF THE MA NO. 410 OF 2022 DATED 3.6.2022 IN OA NO. 13 OF 2022 FOR AMENDMENT FILED BY THE PETITIONER Exhibit P7 TRUE COPY OF THE ADDITIONAL REPLY STATEMENT DATED 30.7.2022 FILED BY THE RESPONDENTS 1 TO 3 IN OA NO. 180/13/2022 Exhibit P8 TRUE COPY OF THE M A NO. 823 OF 2022 DATED 14.10.2022 IN OA NO.13 OF 2022 FILED BY THE PETITIONER Exhibit P9 TRUE COPY OF THE M A NO. 180/00641/2023 DATED 19.7.2023 IN O A NO.180/13/2022 FILED BY THE PETITIONER Exhibit P10 TRUE COPY OF THE M A NO. 202 OF 2024 DATED 5.3.2024 IN O A NO. 180 /13/2022 FILED BY THE PETITIONER Exhibit P11 TRUE COPY OF THE M A NO. 203 OF 2024 IN DATED 5.3.2024 OA NO. 180/13/2022 FILED BY THE PETITIONER Exhibit P12 TRUE COPY OF THE ORDER DATED 18.03.2024 IN M A NO. 203 OF 2024 IN OA NO. 13/2022 OF THE HONOURABLE TRIBUNAL "