Case Law Details
S. Mangalan Vs District Collector (Kerala High Court)
Introduction: In the case of S. Mangalan vs. District Collector, the Kerala High Court addressed the issue of whether the District Collector has the authority to grant sales tax dues instalments under the Kerala General Sales Tax Act. This article provides a detailed analysis of the case and its implications.
1. Background of the Case: The petitioner, S. Mangalan, filed a writ petition under Article 226 of the Constitution of India challenging notices (Ext.P1 and Ext.P4) for the recovery of sales tax dues, interest, and collection charges. These dues were related to the sale of Indian Made Foreign liquor for which the petitioner held a license. The period in question was from August 31, 2022, to August 11, 2023.
2. Petitioner’s Offer for Instalment Payments: During the legal proceedings, the petitioner expressed a willingness to make payments in instalments as per the provisions of Rule 30(B) of the Kerala General Sales Tax Rules, 1963, and under Section 23(3) of the Kerala General Sales Tax Act.
3. District Collector’s Involvement: The petitioner had initially approached the District Collector, requesting permission to pay the outstanding tax amount, interest, and charges in fifty instalments. However, it was highlighted that the District Collector does not have the authority or power to grant instalments for the payment of tax dues under the Kerala General Sales Tax Act and Rules.
4. Authority of Sales Tax Officer: The Kerala General Sales Tax Act and Rules empower the assessing authority, i.e., the Sales Tax Officer, to grant instalments for tax payments in accordance with the provisions of Rule 30(B) of the KGST Rules.
5. Court’s Directive: Given the statutory framework, the Kerala High Court directed the petitioner to file an application before the 4th respondent (Sales Tax Officer) to avail six instalments as per the provisions of Rule 30(B) of the KGST Rules within ten days from the court’s order. The court further instructed the 4th respondent to make a decision on the application within 15 days of its submission. Additionally, the court ordered that the impugned notices should not be implemented for a period of one month.
Conclusion: The Kerala High Court’s ruling in the case of S. Mangalan vs. District Collector clarifies that the District Collector does not have the authority to grant sales tax dues instalments. Instead, the power to grant such instalments lies with the Sales Tax Officer in accordance with the provisions of the Kerala General Sales Tax Act and Rules. This judgment provides important guidance on the procedural aspects of tax payment and instalment options in Kerala.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. Heard Sri. Sarin Panickar, learned counsel for the petitioner as well as Ms. Reshmitha Ramachandran, learned Government Pleader appearing for the respondents.
2. This writ petition has been filed under Article 226 of the Constitution of India impugning Ext.P1 and Ext.P4 notices for recovery of the Sales Tax dues against the petitioner along with interest and collection charges for the period from 31.08.2022 to 11.08.2023 for sale of Indian Made Foreign liquor by the petitioner for which he has been granted license.
3. After some arguments, learned counsel for the petitioner submits that the petitioner is ready to make payments in instalments as per the provisions of Rule 30(B) of the Kerala General Sales Tax Rules,1963 and under Section 23(3) of the Kerala General Sales Tax Act.
4. The learned counsel for the petitioner submits that outstanding tax amount is Rs.1,29,58,830/- with interest of Rs.14,69,851/- and collection charge of Rs.10,82,151/- with processing cost of Rs.170/- (Total of Rs.1,55,11,002/-) as per the notice dated 11.08.2023. The petitioner moved an application to the District Collector praying that the petitioner should be allowed to pay the outstanding tax amount with interest in fifty instalments. Under the provisions of the Kerala General Sales Tax Act and Rules, the District Collector has no authority or power to grant instalments for payment of the tax dues. The Kerala General Sales Tax Acts and Rules empowers the assessing authority ie.,the Sales Tax Officer to grant 6 instalments as per the provisions of Rules 30(B) of the KGST Rules.
5. In view thereof, the petitioner is permitted to move an application before the 4th respondent for availing 6 instalments as per the provisions of Rules 30(B) of the KGST Rules within a period of ten days from today. If such an application is filed by the petitioner, the 4th respondent is directed to take a decision on the application in accordance with law within a period of 15 days thereof. For a period of one month, the impugned notices shall not be implemented.
6. With the aforesaid directions, the present writ petition stands finally disposed of.
