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TMI Blog2012 (12) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... r Mills. In this situation, not inclined to accept the submission of the learned counsel for the petitioner that since waiver application is pending in respect of Manicka Vinayagar Roller Flour Mill, it has to be construed that as on date, there is no liability in respect of said flour mill. Therefore, as there is arrears for two private limited companies and also in respect of one partnership firm M/s.Mappillai Vinayagar Roller Flour Mills, impugned order passed by the 1st respondent attaching the property of another firm for arrears of tax cannot be said to be illegal. As the order of attachment was published by the Commercial Tax Department in the District Gazette on 08.04.2009. Hence, at this juncture, not inclined to accept the submission of the petitioner that the 1st respondent has passed the impugned order without complying with the provisions of Revenue Recovery Act. Against assessee. - Writ Petition (MD) No. 1733 of 2012 , M.P. (MD) Nos.1, 2 of 2012 - - - Dated:- 21-12-2012 - SUBBIAH R. J. AND SUBBIAH R. ,J. For the Appellant : B. Saravanan For the Respondent : R. Karthikeyan, Additional Government Pleader, ORDER:- This writ petition is file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtners of the assessee firm, are concerned, the properties of other firms can be attached. During the course of the proceedings, it was informed by the respondents that the recalculated tax arrears of M/s.Sri Mappillai Vinayagar Roller Flour Mill was ₹ 5,95,963/- only and the same was also paid by M/.Sri Mappillai Vinayagar Cine Complex and as such, the attachment of the properties of M/s.Mappillai Vinayagar Cine Complex was directed to be raised. (e) Admittedly, the tax arrears for the firms M/s. Sri Mappillai Vinayagar Cine complex and M/s.Sri Mappillai Vinayagar Roller Flour Mill were paid upto the year 2008 and in so far as the petitioner firm M/s.Hotel Sangam is concerned, the 1st respondent has never issued any demand notice indicating tax arrears and hence the petitioner firm is not liable to pay any amount towards tax arrears to the 1st respondent as on date. (f) While so, when an application was made to obtain a certificate of encumbrance in respect of the property of the petitioner's firm situate in S.No.444 to an extent of 3321 st.ft.including the bulding at Kakka Thoppu street, Madurai Town from the 2nd respondent, it was indicated in the Certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have to pay arrears of tax along with deferral tax amount to the Government aggregating ₹ 15,95,639/- apart from interest at 2% for each month of default. Even after the release of the immovable property belonging to Sri Mappillai Vinayagar Cine Complex, no further arrears were realisable and the sales tax due stood as on date intimated by way of several notices to the petitioner. Since the assessee defaulted the deferred tax amount and the interest leviable for the earlier payment arrears of ₹ 5,95,963/-, the immovable property of Hotel Sangam (Partnership firm) was proposed for attachment under the provisions of the Revenue Recovery Act on the fact that the Hotel property was owned by the very same partners. In order to recover the revenue, the letter of requisition was sent to the District Registrar of Registration Department for creating encumbrance. All the above said business concerns are mostly owned by a few partners and directors within family relationship and all the above said spinning Mills and Flour Mills are now idle and defunct without transacting any business but having very huge arrears right from the filing of W.P.(MD) No.159 of 2008 and there was no w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the present impugned notice was issued to attach the properties of the petitioner firm in respect of the arrears of tax in respect of other two companies, namely, M/s.Manicka Vinayagar Spinning Mills and M/s.Mappillai Vinayagar Spinning Mills. The said impugned notice was issued to the Sub Registrar, Arasaradi Main Road, Madurai to create an encumbrance in respect of the petitioner firm property for the tax due in respect of two companies, namely, M/s.Mappillai Vinayagar Spinning Mills and M/s.Manicka Vinayagar Spinning Mills. 8.The learned counsel for the petitioner by relying upon the order of this Court passed in W.P.(MD)No.159 of 2008, dated 30.01.2008 submitted that as per the dictum laid down in the said order, the revenue is entitled to proceed against the shares of the common partners in the petitioner partnership firm towards the sales tax arrears of the assessee firm, but so far as the arrears of tax in respect of two private Ltd., companies are concerned the property of the firm cannot be attached though the Directors and Partners of the company and Firm are one and the same and as such the impugned order is not legally sustainable since the first respondent ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x in respect of one of the firms also. Since there is arrears in respect of one of the firms, the impugned order passed by the 1st respondent to attach the property of another firm cannot be said to be wrong. 12. But it is the reply of the learned counsel for the petitioner that the firm has applied for the waiver of tax arrears of ₹ 15,02,847/- in respect of M/s.Mappillai Vinayagar Roller Flour Mills as per G.O.Ms.No.216, Commercial Taxes and Religious Endowments Department dated 11.7.1995. The petitioner has applied for the waiver of tax arrears in respect of the firm and hence it has to be construed that as on date, there is no liability in respect of the Firm M/s.Mappillai Vinayagar Roller Flour Mills and as such for the tax arrears of other two private ltd companies the petitioner firm property cannot be attached. 13. Though it is the submission of the learned counsel for the petitioner that there was arrears of tax only in respect of two Private Limited Companies, the fact that they have applied for waiver of tax arrears in respect of M/s.Mappillai Vinayagar Roller Flour Mills would show that as on date, there is arrears of tax not only in respect of the two p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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