2003 (10) TMI 627 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to recovery proceedings initiated by the respondent-State involving arrears of tax and property attachment.

Analysis:
The petitioner, a company facing heavy losses, challenged recovery proceedings by the respondent-State, including actions by Karnataka State Finance Corporation and Debt Recovery Tribunal. The petitioner admitted liability for tax arrears and pending proceedings before a Magistrate and Tahsildar. The petitioner's counsel argued against parallel proceedings and attachment of the managing director's property.

The court examined the Karnataka Tax on Entry of Goods Act, 1979, specifically section 8(4)(a), which allows tax recovery through various modes without prohibition on multiple proceedings. The court noted three recovery modes: land revenue proceedings, attachment and sale, and criminal court actions. Referring to a previous judgment, the court clarified that authorities can pursue different recovery methods sequentially until the full amount is collected, without prejudicing the assessee.

Citing a relevant case, the court rejected the petitioner's claim of harassment against the managing director's family members, noting the lack of factual basis for the argument. Consequently, the court dismissed the petitions, upholding the recovery proceedings initiated by the respondent-State.