9911796707
TMI Blog1964 (9) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Naib Tehsildar (Sales Tax), Delhi, respondent No. 2, issued a notice to the petitioner-firm for appearance before him on 17th May, 1957. As a result, Sher Singh, petitioner No. 2, who is the managing partner of petitioner No. 1, appeared before the said officer and was informed about the recovery certificate that had been received from the Collector of Bombay. Thereafter, petitioner No. 2 went to Bombay and appeared before the Collector and made a statement on 25th May, 1957, to the effect that he had to pay Rs. 16,800 to the Bombay firm. He, however, stated that out of this decretal amount, he had made certain payments to the Bombay firm and was willing to pay the balance of Rs. 7,515-5-6 to the Government on behalf of their creditor-firm in suitable instalments at Delhi. On 13th June, 1957, the petitioner made an application to respondent No. 4 that he had approached the Collector of Bombay and the proceedings of recovery be, therefore, stayed. The said proceedings were, consequently, stayed. Thereafter, fresh notice of demand was issued by respondent No. 2 to the petitioners and they were asked to appear before him on 20th September, 1957. On this date, two months' time w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On this date, the petitioners filed Civil Miscellaneous Petition No. 1618-D of 1958 in this Court, praying that the present writ petition be admitted and the recovery proceedings be stopped pending its disposal. On 13th November, 1958, the writ was admitted and recovery of the amount in dispute was stayed. Learned counsel for the petitioners submitted that the petitionerfirm was not an assessee within the meaning of the Bombay Sales Tax Act and therefore no recovery of sales tax or penalty could be made from them and the demand in dispute could not be enforced against them. The petitioners did not owe any money to the Government and, consequently, the provisions of the Revenue Recovery Act could not be made use of in the present case. It was also submitted that the respondents could not demand money from third parties in execution of a claim against an assessee. In any case, if the amount in dispute could be recovered from the petitioner-firm, then the proper forum for the realisation of the same was the executing court. The demand, however, could not be enforced under the provisions of the Revenue Recovery Act, 1890. It is undisputed that the Bombay firm owed certain money on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Collector shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt. (4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the Collector to the extent of the liability discharged or to the extent of the liability of the dealer for tax and penalties, whichever is less. (5) Where a person to whom a notice under this section is sent proves to the satisfaction of the Collector that the sum demanded or any part thereof is not due to the dealer or that he does not hold any money for or on account of the dealer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Collector. (6) Any amount of money which a person is required to pay to the Collector or for which he is personally liable to the Collector under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue". A plain reading of this section would show that the Collector can recover the amount due either from the assessee or any other person wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat other district a certificate in the form as nearly as may be of the Schedule stating- (a) the name of the defaulter and such other particulars as may be necessary, for his identification, and (b) the amount payable by him and the account on which it is due. (2) The certificate shall be signed by the Collector making it or by any officer to whom such Collector may, by order in writing, delegate this duty, and, save as otherwise provided by this Act, shall be conclusive proof of the matters therein stated. (3) The Collector of the other district shall, on receiving the certificate, proceed to recover the amount stated therein as if it were an arrear of land revenue which had accrued in his own district." The amount in dispute was recoverable as arrears of land revenue from the petitioner-firm and since this firm had failed to pay the same, they had become a "defaulter" within the meaning of section 2(3) of the Revenue Recovery Act. It says: "'defaulter' means a person from whom an arrear of land revenue or a sum recoverable as an arrear of land revenue, is due, and includes a person who is responsible as surety for the payment of any such arrear or sum." Under the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if he denies his liability to pay the amount or any part thereof and pays the same under protest made in writing at the time of payment and signed by him or his agent, institute a suit for the repayment of the amount or the part thereof so paid. (2) A suit under sub-section (1) must be instituted in a Civil Court having jurisdiction in the local area in which the office of the Collector who made the certificate is situate, and the suit shall be determined in accordance with the law in force at the place where the arrear accrued or the liability for the payment of the sum arose. (3) In the suit the plaintiff may, notwithstanding anything in the last foregoing section, but subject to the law in force at the place aforesaid, give evidence with respect to any matter stated in the certificate. (4) This section shall apply if under this Act as in force as part of the law of Pakistan or Burma, or under any other similar Act forming part of the law of Pakistan or Burma, proceedings are taken against a person in Pakistan or Burma, as the case may be, for the recovery of an amount stated in a certificate made by a Collector in any State to which this Act extends." The remedy by way ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
