Dismissed

Deepa Varghese v. the District Collector

Kerala HC25 May 2016WP(C)/2094/2015

Case brief

AI extract

What is this about?

Guding a petition challenging the attachment of petitioner's property by Sales Tax authorities due to company tax dues, the court upheld the attachment under Section 26C of the KGST Act. Finding no illegality in the department's action, the court dismissed the writ petition for lack of bonafides.

What did the court decide?

Petitioner's writ petition challenging attachment of property under KGST Act is dismissed for lack of bonafides.

Deepa Varghese Vs the District Collector — Cheque Dishonour | Kerala HC (2016)

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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 A.M.SHAFFIQUE

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WEDNESDAY, THE 25TH DAY OF MAY 2016/4TH JYAISHTA, 1938

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WP(C).No. 2094 of 2015 (J)

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PETITIONER(S) :

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DEEPA VARGHESE, D/O.C.V.VARGHESE, AGED 42 YEARS, CHAKKALAYIL, NORTH STREET, KARTHIKAPPALLY TALUK, KAYAMKULAM, ALAPPUZHA DISTRICT.

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BY ADVS.SRI.D.SAJEEV SMT.LIGEY ANTONY

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RESPONDENT(S) :

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THE DISTRICT COLLECTOR, THIRUVANANTHAPURAM - 695 001.

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2. THE TAHSILDAR (REVENUE RECOVERY) OFFICE OF THE TAHSILDAR(RR), FORT P.O., THIRUVANANTHAPURAM - 695 023.

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THE VILLAGE OFFICER, THYCAUD, THIRUVANANTHAPURAM - 695 001.

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4. THE UNION BANK OF INDIA, CHALAI BAZAR BRANCH, THIRUVANANTHAPURAM- 695 023 REPRESENTED BY ITS BRANCH MANAGER.

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R1 TO R3 BY GOVERNMENT PLEADER SRI.BOBBY JOHN R4 BY ADV. SRI.A.S.P.KURUP, S.C

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 25-05-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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Msd.

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WP(C).No. 2094 of 2015 (J)

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APPENDIX

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PETITIONER(S)' EXHIBITS :

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EXT P1: TRUE PHOTO COPY OF THE SALE DEED NO.1050/1995 DATED 18.03.1995 EXECUTED IN FAVOUR OF THE PETITIONER.

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EXT P2: TRUE PHOTO COPY OF THE NOTICE OF SALE OF IMMOVABLE PROPERTY DATED 30.05.2013 ISSUED BY THE 2ND RESPONDENT.

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EXT P3: TRUE COPY OF THE PROCEEDINGS OF THE 2ND RESPONDENT DATED 02.08.2013.

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EXT P4: TRUE PHOTO COPY OF THE NOTICE OF THE SALE OF IMMOVABLE PROPERTY DATED 11.12.2014 ISSUED BY THE 2ND RESPONDENT.

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RESPONDENT(S)' EXHIBITS :

NIL

//TRUE COPY//

P.A.TO JUDGE.

Msd.

A.M.SHAFFIQUE, J.

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------------------------------------ W.P.(C) No.2094 of 2015

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Dated this the 25^th day of May, 2016

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J U D G M E N T

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The petitioner challenges proceedings initiated by the respondent Sales Tax authorities for attaching his property. The petitioner admittedly is the Director of a private limited company. It is also an admitted fact that the company is liable to pay sales tax dues to the Sales Tax Department.

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The petitioner submits that certain other properties are also under attachment and therefore, the property of the petitioner cannot be attached. The right of the Sales Tax authorities to attach the property of the Directors is well covered by Section 26C of the KGST Act which has been brought into force from 01.04.1999. Section 26C reads as under :

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“ 26C. Liability of Directors of a Private Company. -

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Subject to the provisions of the Companies Act 1956 (Central Act 1 of 1956) where any tax or other amount recoverable under this Act from any private company, whether existing or wound up or under liquidation, cannot be recovered for any reason whatsoever, every person who was a director of such company at any time during the period for which the tax or other amount is due under this Act shall be jointly and severally liable for the payment of such tax or other amount.”

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In view of the statutory provision, I do not find any illegality in the action of the Department for attaching the private property of

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the Director and therefore, it is always open for the revenue

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W.P.(C) No.2094 of 2015

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authorities to proceed against the property in accordance with law.

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Hence, this writ petition lacks bonafides and accordingly the

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same is dismissed.

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Sd/-

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A.M.SHAFFIQUE, JUDGE.

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Deepa Varghese v. the District Collector

Case brief

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Deepa Varghese v. the District Collector

Case brief

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