Job G.Oommen Vs Union of India (Kerala High Court)
Kerala High Court held that recovery of tax arrears by income tax department from property that was already auctioned by Kerala General Sales Tax Act, 1963 [KGST] to realize tax payable under KGST is untenable in the eye of law.
Facts- One late P.N.Madhavan Pillai was the proprietor of M/s.Mohandas Cashew Factory, Arakkal, Kollam District. He was an assessee under the provisions of the KGST Act and had arrears in excess of Rs.58 lakhs for the period from 1995 onwards. He was also in arrears with respect to Cashew Workers Welfare Fund dues for the period from 1997 to 2000.
For the realization amounts, revenue recovery proceedings were initiated under the provisions of the Revenue Recovery Act, 1968, and an extent of 78.30 Ares of his property was attached.
Out of the afore property, an extent of 28.32 Ares of land were auctioned on 30.08.2006 in favour of one Smt.Sushamakumari and the sale was confirmed on 09.02.2007. The afore Smt.Sushamakumari assigned the said property to one Sri.Kishore, as per a sale deed dated 04.11.2009. The afore extent of the property and the factory building therein were purchased by the petitioner from Sri.Kishore, as per the sale deed dated 13.10.2011. He is stated to be conducting the Cashew Factory in the afore property in the factory building thereafter.
