2019 (2) TMI 1163 - HC - VAT and Sales Tax

Computation of Compounding of tax - KVAT Act - death of proprietor - Transfer of registration of the proprietor also applied - case of petitioner is that there is unreasonable delay insofar as seeking for impleadment, setting aside abatement - Held that - The Tribunal had noticed that the transfer of registration was applied for earlier on 22.05.2017. The fact that the transfer of registration was applied for before the Assessing Officer, would definitely enable the Department to file an impleading petition. But, the person who applied for transfer of registration in his name also had a duty to apprise the Tribunal of the death of his predecessor and he having stepped into the shoes of his father - In fact, the Tribunal has specifically noticed that it was apprised of the death of the proprietor of the firm on 19.10.2017. The Counsel for the firm had informed the Tribunal about the death of the proprietor. Within six weeks there was an application for impleadment filed. The delay insofar as setting aside the abatement is only for reason of the expiry of 90 days without an application for impleadment. There is no infirmity in the order of the Tribunal to be interfered with in the above original petition - petition disposed off.

Summary

Issues:
1. Transfer of registration in the name of the son of the deceased proprietor.
2. Impleadment of legal heirs in an ongoing appeal before the Tribunal.
3. Allegations of unreasonable delay in seeking impleadment and setting aside abatement.

Transfer of Registration:
The petitioner, a firm registered under the Kerala Value Added Tax Act, had the registration transferred to the son of the deceased proprietor. The son filed an application for transfer of registration along with a legal heirship certificate and consent from other legal heirs. The registration was successfully transferred to the son.

Impleadment of Legal Heirs:
During an appeal before the Tribunal, the legal heirs of the deceased proprietor were not initially impleaded. The firm's counsel informed the Tribunal about the death of the proprietor and the need to implead the legal heirs. An application for impleadment of the son of the deceased proprietor was filed and allowed after due process. The Tribunal considered the issue comprehensively, noting the timely application for transfer of registration and the subsequent impleadment process.

Allegations of Unreasonable Delay:
The firm challenged the order, alleging unreasonable delay in seeking impleadment and setting aside abatement. The Tribunal, however, found that the delay was not due to any negligence on the part of the Department. The Tribunal was informed about the death of the proprietor promptly, and the application for impleadment was filed within a reasonable timeframe. The Tribunal rightly condoned the delay, and the High Court upheld the Tribunal's decision, finding no infirmity in the order.

Additional Direction:
The High Court directed the petitioner to provide the names and addresses of all legal heirs, and the Department was instructed to take necessary steps to implead them in the ongoing appeal. The original petition was rejected with the above observations and directions, with no order as to costs.