Partly allowed

P. Sunderdas v. the Assistant Commissioner (Assessment)

Kerala HC13 Sept 2007WP(C)/4999/2007

Case brief

AI extract

What is this about?

The Kerala High Court dismissed the petitioner's liability claim immediately. Upon finding the company indebted to a bank, the Court ordered the Managing Director to settle all creditor liabilities first. Personal recovery under Section 26C was stayed for two months pending settlement of these dues.

What did the court decide?

Petitioner granted two months time to settle company liabilities to all creditors, including sales tax; personal recovery continued only if this fails under Section 26C of the KGST Act.

P. Sunderdas Vs the Assistant Commissioner (Assessment) — GST and Indirect Tax | Kerala HC (2007)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR

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THURSDAY, THE 13TH SEPTEMBER 2007 / 22ND BHADRA 1929

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WP(C).No. 4999 of 2007(T)

PETITIONER:

P. SUNDERADAS, S/O.P. KRISHNAN, AGED 59 YEARS, `KRISHNA', WEST HILL, CALICUT. BY ADV. SRI.C.A.CHACKO SMT.C.M.CHARISMA SRI.N.A.SHAFEEK

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RESPONDENTS:

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THE ASSISTANT COMMISSIONER (ASSESSMENT) SPECIAL CIRCLE-1, DEPARTMENT OF COMMERCIAL TAXES, KOZHIKODE.

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THE DEPUTY TAHSILDAR (R.R.), KOZHIKODE.

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BY G.P. SRI. C.K. GOVINDAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13/09/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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APPENDIX

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PETITIONER'S EXHIBITS:

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EXT.P1 TRUE COPY OF THE JNOTICE DATED 30.1.2007 ISSUED BY THE 2ND RESPONDENT INTIMATING INITIATION OF RECOVERY PROCEEDINGS TO REALISE THE SALES TAX ARREARS OF 1996-97 ,1997-98, 1999-2000 AND 2000-01.

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EXT.P2 TRUE COPY OF THE RR NOTICES DATED 30.1.2007 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 1997-98

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EXT.P3 TRUE COPY OF THE RR NOTICES DATED 30.1.2007 ISSUED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEARS 1998-99

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EXT.P4 TRUE COPY OF THE REPRESENTATION DATED 2.2.2007 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

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RESPONDENTS' EXHIBITS: NIL.

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TRUE COPY

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P.S. TO JUDGE.

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C.N.RAMACHANDRAN NAIR,J.

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W.P.C. NO. 4999 OF 2007

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Dated this the 13th day of September, 2007

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JUDGMENT

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I do not think there is any need for this Court to decide petitioner's liability for sales tax as Managing Director of the Company in terms of Section 26C of the KGST Act. Based on petitioner's submissions, this Court ordered recovery from company's properties. Government Pleader reported that even though company has some properties, the liability due from the company to Co-op. Bank is above Rs. 4.5 crores. In the circumstances, petitioner as managing director should settle the liability of all the creditors including sales tax failing which respondents can proceed for recovery in accordance with Section 26C of the KGST Act against petitioner personally. Petitioner is granted two months' time from today for settling liability failing which personal recovery can be continued against him under Section 26 C of the Act.

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W.P. is disposed of as above.

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(C.N.RAMACHANDRAN NAIR) Judge

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P. Sunderdas v. the Assistant Commissioner (Assessment)

Case brief

What is this about?

What did the court decide?

P. Sunderdas v. the Assistant Commissioner (Assessment)

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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