Madras HC Order in the case of Mrs.Saraspathy Sundaraj Versus The Assistant Commissioner

Case Covered:

Mrs.Saraspathy Sundaraj

Versus

The Assistant Commissioner

Facts of the Case:

The petitioner is aggrieved against the attachment created in her property situated in Survey No.156/1 and 156/2, T.S.No.6056, Block No.135, Theyagaraya Nagar Division, measuring 5623 sq. ft, New Door No.11, Old Door No.29, Sarojini Street, T.Nagar, Chennai – 600017.

Through the impugned letter dated 04.03.2015, the first respondent herein had furnished particulars of the attachment made in the subject property. The facts, as revealed in the said letter, states that one Thiru.T.C.Wilson (late), proprietor of M/s.New Nelson Watch Company, was in arrears of sales tax for the assessment year 1996-97 under the TNGST Act, 1959, to the tune of Rs.1,75,830/-. The order dated 26.02.1999 levying tax and penalty was communicated to the assessee and served on him on 19.04.1999. In this background, the assessee had sold the subject property to the petitioner on 27.01.2000 and the petitioner herein had subsequently settled the property in favour of her son on 25.04.2003. The encumbrance of the charge over the subject property was recorded in the registers of the Registration Department on 10.09.2007.

Order of the Hon’ble Court:

It is seen that the assessee was liable to pay a total sum of Rs.1,75,830/-, which includes the sales tax as well as penalty under Sections 12(3)(b) and 24(3) of the TNGST Act and possibly with an interest. Since the value of the property, as evidenced in the sale deed, seems to be much higher than the actual arrears, I am of the view that the petitioner herein can be given an option to pay the entire liability of the original assessee, so as to release her property from the charge.

As the result, the Writ Petition stands dismissed. Respondents 1 and 2 are at liberty to enforce the charge over the subject property for recovery of the arrears of tax due from the assessee, namely Thiru.T.C.Wilson (late), proprietor of M/s.New Nelson Watch Company, in a manner known to law. However, if the petitioner is of the view that they are willing to settle the entire arrears together with a penalty to the department, liberty is hereby granted to the petitioner to approach the first respondent herein, together with the entire sales tax arrears and penalty and applicable interest, along with a representation. On receipt of the same, the first respondent herein shall consider the request favourably, instead of proceeding against the subject property. The petitioner shall make such a representation, enclosing the entire arrears, at least within a period of 30 days from the date of receipt of a copy of this order. Respondents 1 and 2 shall keep in abeyance the proceedings for the enforcement of the charge against the property, till the expiry of the 30 days from the date of receipt of this order. No costs. Consequently, the connected miscellaneous petition is closed.

Read & Download the full Order in pdf: