2015 (9) TMI 730 - HC - VAT and Sales Tax

Abkari Dues Recovery of Dues Revenue recovery proceedings are initiated in respect of alleged dues from fourth respondent towards Abkari dues and sales tax dues Petitioner alleged that they were never part of any transaction and had never given any surety nor mortgaged any property to facilitate fourth respondent to conduct foreign liquor shop, therefore submitted that revenue recovery proceedings are liable to be set aside Held that - statement has been filed by first respondent therein it was stated that second petitioner has signed Form 6 Bond before Sales Tax Officer and had sworn to affidavit before Sales Tax Officer stating that he and his brother, are liable to pay arrears due from fourth respondent Detailed inquiry is necessary in this matter Necessarily, signature of second petitioner is to be verified Decided partially in favour of Petitioner.

Summary

Issues: Impugning revenue recovery proceedings due to alleged dues from the fourth respondent towards Abkari and sales tax dues.

Analysis:
1. The petitioners challenge revenue recovery proceedings concerning alleged dues from the fourth respondent towards Abkari and sales tax dues. They argue that the first petitioner was a minor and the second petitioner was serving in the military at the time of the security bond's execution, claiming they were not part of any transaction, did not provide any surety, nor mortgaged any property to enable the fourth respondent to operate a foreign liquor shop. They contend that the second petitioner was on duty when the security bond was executed, and the first petitioner was a minor, rendering him incapable of executing any bond. Consequently, they seek to set aside the revenue recovery proceedings.

2. The first respondent submitted a statement indicating that the second petitioner signed a Form 6 Bond before the Sales Tax Officer, affirming liability for arrears amounting to Rs. 15,00,000 along with the first petitioner. The second petitioner also swore an affidavit before the Sales Tax Officer acknowledging the liability to pay the dues from the fourth respondent.

3. The court determines that a thorough investigation is essential in this matter, directing the District Collector to conduct an inquiry under the Revenue Recovery Act. The District Collector is instructed to verify whether the first petitioner was a minor at the time of executing the security bond and to authenticate the second petitioner's signature. A decision is to be made within three months, and any further revenue recovery actions must be based on the District Collector's written order following the outlined observations. The petitioners are required to present a copy of the writ petition and a certified judgment copy to the District Collector for compliance. The writ petition is disposed of without costs.