Kerala High Court
M/S.Star Homes & Resorts (P) Ltd vs The Commercial Tax Officer (L.T) on 23 December, 2009
Author: C.K.Abdul Rehim
Bench: C.K.Abdul Rehim
IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 37595 of 2009(T)
1. M/S.STAR HOMES & RESORTS (P) LTD.,
... Petitioner
Vs
1. THE COMMERCIAL TAX OFFICER (L.T),
... Respondent
2. THE INSPECTING ASSISTANT COMMISSIONER,
For Petitioner :SRI.V.P.SUKUMAR
For Respondent : No Appearance
The Hon'ble MR. Justice C.K.ABDUL REHIM
Dated :23/12/2009
O R D E R
C.K.ABDUL REHIM, J.
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W.P.(C).No.37595 OF 2009
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Dated this the 23rd day of December, 2009
J U D G M E N T
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1. Through Ext.P1 notice issued under Rule 3(8) of the Kerala Tax on Luxuries Rules, 1976, payment of luxury tax due from the petitioner for the period from October 2008 to March 2009 was demanded. Total tax liability under Ext.P1 is Rs.14,32,475/- along with interest on Rs.1,41,140/-. Since payment was not made as demanded, revenue recovery steps were initiated and Ext.P2 is the notice issued under Section 7 of the Kerala Revenue Recovery Act. The total demand including interest raised under Ext.P2 is Rs.18,60,111/-. According to the petitioner due to the global economic crisis in the real estate business, he was affected very badly and business activities of the petitioner had been seriously reduced resulting in severe deficiency of cash flow. Hence the petitioner could not meet the demand in lump sum.
2. Limited prayer of the petitioner in this writ petition is to permit payment of amounts covered under Ext.P1 & P2 in installments, within a reasonable period. According to the petitioner eventhough the petitioner had approached the W.P.(C).37595/09 2 respondents with such a request, the same was not considered. Since coercive steps for attachment and sale of properties belonging to the petitioner is threatened, the petitioner is approaching this court.
3. Having considered facts and circumstances of the case I am of the opinion that the petitioner can be given a chance to pay off the liability in installments within a reasonable time.
4. Accordingly, the writ petition is disposed of directing the respondents to keep coercive steps of recovery in abeyance, if the petitioner remits the amount demanded under Ext.P2 along with future interest due thereon in 6 (six) equal monthly installments falling due on or before 31.1.2010 and on or before the last day of every succeeding month.
5. It is made clear that on the event of default in making payment of any of the installments, the benefit granted herein will stand automatically recalled and the respondents will be free to proceed with further coercive steps. On such event the petitioner will be precluded from raising any further challenge against such proceedings.
C.K.ABDUL REHIM, JUDGE.
okb