Madras High Court
V.Chinnaiah vs State Of Tamil Nadu on 6 October, 2023
W.A.(MD).No.885 of 2016
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 06.10.2023
CORAM
THE HON'BLE MR JUSTICE S.M.SUBRAMANIAM
AND
THE HON'BLE MR JUSTICE V.LAKSHMINARAYANAN
W.A.(MD).No.885 of 2016
and
C.M.P.(MD).No.5341 of 2016
V.Chinnaiah .. Appellant/Petitioner
Vs.
1.State of Tamil Nadu,
Represented by its Secretary to Government,
Department of Commercial Taxes and
Registration Department,
Fort St.George,
Chennai – 600 009.
2.The Commercial Tax Officer,
Manapparai,
Trichirappalli District. ..Respondents/Respondents
PRAYER: Writ Appeal filed under Clause 15 of Letters Patent, to set aside
the order passed by the learned Judge dated 09.02.2016 and made in W.P.
(MD).No.13667 of 2013 and allow the Writ Appeal.
For Appellant : Mr.A.S.Mujibur Rahman
For Respondents : Mr.S.Shanmugavel
Additional Government Pleader
Page 1 of 6
https://www.mhc.tn.gov.in/judis
W.A.(MD).No.885 of 2016
JUDGMENT
(Judgment of the Court was delivered by V.LAKSHMINARAYANAN,J.)
The Writ Appeal has been filed challenging the order passed in W.P.
(MD).No.13667 of 2013 dated 09.02.2016.
2. The appellant availed deferral scheme under the Sales Tax Act. As
per the deferral scheme, the arrears that he was liable to pay was
Rs.3,80,154/-. In addition, the Assessing Officer, in exercise of the powers
vested in him under the best assessment judgment, imposed Rs.3,84,045/-.
The appellant sought for the benefit of the Tamil Nadu Sales Tax
(Settlement of Arrears) Act, 2011. In terms of the said Act, the appellant
ought to have paid 100% of the tax admitted together with 40% of the
arrears at the rate of 7.5% per annum. This worked out as Rs.7,64,199/-.
3. The appellant approached this Court by way of Writ Petition and
obtained an interim stay with a conditional order to pay Rs.3,00,000/-. Out
of the said amount of Rs.3,00,000/-, the appellant paid a sum of
https://www.mhc.tn.gov.in/judis
W.A.(MD).No.885 of 2016
Rs.1,00,000/- on 18.09.2013. For the remaining sums, the time period
granted by this Court lapsed on 03.10.2013. The petitioner did not comply
with the later portion. In other words, the petitioner, who obtained an
interim order in W.P.(MD).No.13667 of 2013, did not comply with the same.
4. It is on record that the petitioner did not pay 100% of the admitted
tax and 40% of the arrears, as per the Tamil Nadu Sales Tax (Settlement of
Arrears) Act, 2011. When there are arrears of tax, the authorities are
entitled to proceed to recover the amount in terms of the Revenue Recovery
Act. That is what has been done in the present case. The learned counsel
for the appellant states that his client has paid Rs.3,00,000/- and therefore,
we should show some indulgence.
5. In the present case, the arrears commenced from the assessment
year 1994-1995 and ended in 2000-2001. For merely a period of 28 years,
the appellant has successfully dodged in retaining the funds of the State
with himself, apart from the fact that he has not availed the benefit of the
orders granted by this Court. As already pointed out, when arrears are
payable, the authorities are empowered under the Act to proceed to sell the
https://www.mhc.tn.gov.in/judis
W.A.(MD).No.885 of 2016
property by invoking the provisions of Revenue Recovery Act. If the Writ
Petition is allowed, it will amount to interfering with the statutory powers
exercised by the taxation authorities. Since the appellant is a tax dodger, we
are not inclined to exercise a discretion in his favour. The learned Single
Judge has recorded these facts and has dismissed the Writ Petition. We do
not find any necessity to interfere with the said order.
6. Accordingly, the Writ Appeal stands dismissed. The authorities are
at liberty to proceed against the property of the petitioner in accordance
with law. There shall be no order as to costs. Consequently, connected
miscellaneous petition stands closed.
(S.M.S.,J.) (V.L.N.,J.)
06.10.2023
NCC : Yes / No
Index : Yes / No
Internet : Yes / No
Lm
https://www.mhc.tn.gov.in/judis
W.A.(MD).No.885 of 2016
To
1.The Secretary to Government,
State of Tamil Nadu,
Department of Commercial Taxes and
Registration Department,
Fort St.George,
Chennai – 600 009.
2.The Commercial Tax Officer,
Manapparai,
Trichirappalli District.
https://www.mhc.tn.gov.in/judis
W.A.(MD).No.885 of 2016
S.M.SUBRAMANIAM,J.
and
V.LAKSHMINARAYANAN,J.
Lm
W.A.(MD).No.885 of 2016
06.10.2023
https://www.mhc.tn.gov.in/judis
