IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 12TH AUGUST 2009 / 21ST SRAVANA 1931 WP(C).No. 36536 of 2005(Y) -------------------------- PETITIONER(S): --------------- 1. K.P.MOHAMMED SIDDIQUE, S/O.K.HAMEED, AGED 43 YEARS, KAMPAYI PUTHIYAPURAYIL HOUSE, 1/3803, ANUGRAHA, BILATHIKKULAM, CALICUT. 2. C.P.ZEENATH, W./O.K.P.MOHAMMED SIDIQQUE, -DO- -DO- BY ADV. SRI.T.M.RAMAN KARTHA SRI.MANJU R.KARTHA RESPONDENT(S): --------------- 1. STATE OF KERALA REP. BY SECRETARY, DEPARTMENT OF REVENUE & TAXES, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM. 2. KERALA STATE INDUSTRIAL DEVELOPEMENT, CORPORATION LIMITED, REP. BY ITS MANAGING DIRECTOR REGD. OFFICE AT KESTON ROAD, KAWDIAR, THIRUVANANTHAPAURAM-3. 3. DEOUTY COMMISSIONER, COMMERICIAL TAXES, KOZHIKODE. 4. TAHSILDAR (REVENUE RECOVERY), PUTHIYARA, KOZHIKODE. 5. STATE BANK OF TRAVANCORE, MAVOOR BRANCH, KOZHIKODE REP. BY BRANCH MANAGER. R1,3&4 BY G.P. SRI.MOHAMMED RAFIQ ADV. SRI.M.PATHROSE MATTHAI, SENIOR ADVOCATE FOR R2 SRI.RONY J.PALLATH FOR R2 SRI.RADHIKA RAJASEKHARAN P. FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF LETTER DT.21.1.1995 ISSUED BY THE MANAGER(PROJECTS) OF R2. P2: TRUE COPY OF REPRESENTATION DT.NIL FILED BY M/S.SUPRA EDIBLE OIL PVT. LTD. BEFORE THE MINISTER FOR INDUSTRIES, GOVT. OF KERALA. P3: TRUE COPY OF THE LETTER DT.309.9.95 ISSUED BY THE MANAGING DIRECTOR OF M/S.SUPRA EDIBLE OIL PVT. LTD. P4: TRUE COPY OF THE LETTER DT.24.1.96 ISSUED BY DY. GENERALA MANAGER (PROJECTS) OF R2. P5: TRUE COPY OF THE PROCLAMATION OF SALE ISSUED BY THE RECOVERY OFFICER OF DRT, KERALA IN DRC NO.819/SBT/KZD DT.17.3.2004. P6: TRUE COPY OF THE NOTICE FOR SALE OF IMMOVABLE PROPERTY DT.26.11.2005 ISSUED BY R4. P7: TRUE COPY OF REPRESENTATION DT.2.12.05 FILED BY 1ST PETITIONER BEFORE R3. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.36536 of 2005 .................................................................... Dated this the 12th day of August, 2009. JUDGMENT Petitioners are challenging recovery proceedings for recovery of arrears of sales tax due from a company of which petitioners were directors. The petitioners' case is that arrears of sales tax is due for the years 1995-96 and 1996-97 and therefore, Section 26C of the KGST Act introduced with effect from 1.4.1998 cannot be applied. I find force in this contention because Section 26C is not given retrospectivity. Further, even though this court passed interim order on 11.12.2007 directing recovery by attachment and sale of property of the defaulter-company, recovery authorities have not cared to do it. In the circumstances, W.P. is disposed of quashing recovery proceedings against petitioners and directing the recovery authorities to proceed for recovery against the assets of the defaulter-company, if they are interested. C.N.RAMACHANDRAN NAIR Judge pms