IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 16TH SEPTEMBER 2010 / 25TH BHADRA 1932 WP(C).No. 20305 of 2004(P) ---------------------------------------- PETITIONER(S): ------------------------ M. HALEEF, S/O. MUHAMMED IBRAHIM AGED 34 YEARS, HALEEF MANZIL, KALLATMUKKU, MANAKKAD P.O., THIRUVANANTHAPURAM. BY DR.K.B.MUHAMED KUTTY, SENIOR ADVOCATE RESPONDENT(S): --------------------------- 1. THE SALES TAX OFFICER, SALES TAX OFFICE, ATTINGAL. 2. THE DEPUTY TAHSILDAR, REVENUE RECOVERY, THIRUVANANTHAPURAM. R1 & R2 BY GOVT. PLEADER MR.K.P. PRADEEP. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 20305/2004-P APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE DEMAND NOTICE IN FORM NO.10 DATED 17/03/2003. EXT.P2: COPY OF THE DEMAND NOTICE IN FORM NO.1 DATED 17/03/2003. EXT.P3: COPY OF THE CERTIFIED COPY OF THE ASSESSMENT ORDER DATED 29/03/2000. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.S. TO JUDGE rs. P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P (C) No. 20305 OF 2004 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 16th day of September, 2010 JUDGMENT The petitioner is challenging Exts. P1 and P2 notices issued under the Kerala Revenue Recovery Act, seeking to realize the arrears of sales tax in respect of the assessment year 1995-'96, actually stated as due from the Company by name MIR Building Materials Private Limited, Thonippara, Varkala. 2. The case of the petitioner is that, he became the Director of the Company, obtaining requisite shares only w.e.f. 01.01.98 while Exts. P1 and P2 notices are in respect of the liability pertaining to the year 1995-'96. The learned counsel for the petitioner submits that, the personal property of the petitioner/Director of the Company, can never been proceeded against in respect of the liability to be cleared by the Company, mainly for the fact that the enabling provision as per Section 26 C of the KGST Act was brought into force only w.e.f. 01.04.1999. 3. The learned Government Pleader appearing for the respondents, on instructions, submits that, the idea and understanding of the petitioner is quite wrong and misconceived. The steps taken by the concerned respondents against the Company turned to be futile and same was the W.P. (C) No. 20305 of 2004 2 position, when appropriate proceedings were taken against the other Directors. In the course of the proceedings, it was brought to the notice of the respondents/Revenue that the Company had already been closed down and all the assets of the Company were transferred to the petitioner and it was in the said circumstances, that further proceedings were taken by issuing notices, as borne by Ext. P1 and P2 notices to the petitioner, which hence are not assailable under any circumstances 4. The learned counsel for the petitioner submits that, the petitioner does not have any objection, if at all any such asset has been transferred by the Company to the petitioner as contended by the respondents. It is also stated that, since the petitioner has been left in dark without any opportunity to ascertain the position and the liability if any, the petitioner might be given an opportunity of hearing, before fixing the qunatum and if at all any legally sustainable liability is there, the petitioner might be permitted to avail the benefit under the Amnesty Scheme, since the Scheme is announced and is valid till 31.12.2010. 5. After hearing both the sides, the second respondent is directed to finalize the proceedings with regard to the quantification of the liability of the petitioner if any, by giving an opportunity of hearing to the petitioner. It shall be done as expeditiously as possible, at any rate, within 6 weeks from the date of receipt of a copy of this judgment. It will be open for the W.P. (C) No. 20305 of 2004 3 petitioner to avail the benefit of Amnesty Scheme on finalization of the proceedings as above, subject to the terms of the Scheme as aforesaid. The Writ Petition is disposed of as above. P. R. RAMACHANDRA MENON, JUDGE kmd