2012 (11) TMI 884 - HC - VAT and Sales Tax

Liability to Tax after Closure of Business - recovery notices for recovering more than Rs.5 lakhs. - assessee submited that tax due for the period up to the cancellation was paid by him in its entirety - Held that - quantification is necessary for the reason that according to the petitioner, the liability has been discharged in full - respondent is directed to quantify the balance liability, if any, that of the petitioner. For expediting such a quantification petitioner will appear before the first respondent between 10 and 11 A.M. on 15.11.2012 along with a copy of this judgment and then he shall quantify the liability of the petitioner after hearing the petitioner also in the matter - Writ petition is disposed of.

Summary

Issues:
1. Dispute over tax payment and cancellation of registration.
2. Allegations of non-compliance with court directions.
3. Revenue recovery proceedings and quantification of liability.

Analysis:

Issue 1: Dispute over tax payment and cancellation of registration
The petitioner, a former proprietor of a business, claimed to have paid all taxes due until the cancellation of registration in 2002. Despite this, a notice demanding payment was issued, leading to a legal challenge and subsequent judgment (Ext.P8) directing a review of the payment status. The petitioner alleged that no communication was received post-judgment, yet faced further recovery notices and property attachment. The final amount in default was stated as Rs.5,48,856, leading to the initiation of revenue recovery proceedings.

Issue 2: Allegations of non-compliance with court directions
The petitioner contended that the respondents failed to comply with the directions outlined in the Ext.P8 judgment, which required a review of the claimed payment amount. The absence of quantification of the liability, despite the petitioner's assertion of full payment, raised concerns regarding procedural fairness and adherence to judicial directives.

Issue 3: Revenue recovery proceedings and quantification of liability
The learned Government Pleader confirmed a total outstanding amount of Rs.5,13,075 for the specified period, justifying the initiation of revenue recovery proceedings. However, the lack of quantification of the petitioner's liability, as directed by the court, highlighted a procedural gap. Consequently, the court directed the first respondent to quantify any remaining liability after a hearing with the petitioner, emphasizing the need for a fair and accurate assessment.

In conclusion, the judgment addressed the complex interplay between tax disputes, court directives, and revenue recovery proceedings. By emphasizing the importance of quantifying the petitioner's liability and ensuring procedural fairness, the court aimed to resolve the ongoing legal dispute effectively.