IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 15TH FEBRUARY 2008 / 26TH MAGHA 1929 OP.No. 36170 of 2001(E) ----------------------- PETITIONER: ------------ V.C. DEVASIA, AGED 71, SON OF LATE CHERIYATHU, VELLAPPANIYIL, ELAMKULAM VILLAGE, KANJIRAPPALLY. BY ADV. SRI.P.RAVINDRA BABU RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, REVENUE DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. ADDL. SALES TAX OFFICER, PONKUNNAM, OFFICE OF THE SALES TAX OFFICER, PONKUNNAM, KOTTAYAM DIST. 3. THE DEPUTY TAHSILDAR, REVENUE RECOVERY, KANJIRAPPALLY, KOTTAYAM DIST. ADDL. 4. LAKSHMIKUTTY AMMA, AGED ABOUT 60, WIFE OF LATE M.G.KARUNAKARAN NAIR, MULACKAL HOUSE, ELAMGULAM VILLAGE, KOORALI P.O., KANJIRAPPALLY TALUK. ADDL. 5. MANOJ, K., AGED ABOUT 29, SON OF LATE ;M.G. KARUNAKARAN NAIR, DO.DO. ADDL. 6. VINOD, K., AGED ABOUT 27, DO.DO. ADDL. 7. MANJU, K., AGED 25, DAUGHTER OF LATE M.G. KARUNAKARAN NAIR, DO. DO. ADDL. R4 TO R7 ARE IMPLEADED AS PER ORDER DATED 5.12.2001 IN CMP 60592/01 R1 TO R3 BY GOVERNMENT PLEADER SRI. K.P. PRADEEP R4 TO R7 BY ADV. SRI.TOMY SEBASTIAN THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 15/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 ORDER ON CMP 59070 OF 2001 IN OP 36170 OF 2001 DISMISSED 15.2.2008 SD/-C.N.RAMACHANDRAN NAIR, JUDGE. APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE COPY OF THE SECURITY BOND DATED 1.9.87 FOR RS. 1,00,000/- EXT.P2 TRUE COPY OF THE DEMAND NOTICE DATED 5.12.95 ISSUED BY THE 2ND RESPONDENT. EXT.P3 TRUE COPY OF THE REPLY DATED 8.12.95 GIVEN TO THE 2ND RESPONDENT BY THE PETITIONER. EXT.P4 TRUE COPY OF DEMAND NOTICE SENT BY THE 2ND RESPONDENT DATED 3.10.98 EXT.P5 TRUE COPY OF THE REPLY SENT TO THE 2ND RESPONDENT DATED 14.10.98 EXT.P6 TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 17.11.2001 ISSUED BY THE THIRD RESPONDENT. RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- O.P. NO. 36170 OF 2001 -------------------------------------------- Dated this the 15th day of February, 2008 JUDGMENT Petitioner is challenging recovery proceedings for recovery of arrears of sales tax due from one Mr. M.G. Karunakaran Nair for whom petitioner stood as surety at the time of making application for registration under the KGST Act. Respondents 4 to 7 impleaded in the O.P. are the legal heirs of the dealer who applied for registration. Petitioner's case is that since dealer was not granted registration in the year in which application was filed, the bond executed in Form 6 cannot be enforced against him. The liability undertaken under the security bond by the petitioner is Rs. 1 lakh. Government Pleader reported that though application for registration could not be processed and registration granted to the dealer in the year 1982-83, registration was granted from 1986-87 onwards. Obviously security bond furnished by the petitioner was not withdrawn or collected back from the Officer after Officer failed to grant registration to the dealer during 1982-83. On the other hand, bond was executed only when registration 2 was granted in 1987. Petitioner is right in his argument that tax pertains to any period prior to the execution of the bond cannot be recovered from him. However, liability to the extent covered by the bond can be recovered from the petitioner for tax due for any period after the date of execution of the bond. O.P. is accordingly dismissed with direction to respondents 2 and 3 to limit the recovery against the petitioner as above to the extent of amount covered by the bond and interest due thereon from the date of demand from the petitioner and balance arrears of tax due will be recovered from the assets of the defaulter and other sureties if any. (C.N. RAMACHANDRAN NAIR) Judge kk 3