M.K. LAKSHMI Vs. STATE OF KERALA

JUDGEMENT

(1.) One Sri S. Suresh Babu, son of the petitioner was the proprietor of a small-scale Industrial unit by name "Solid Rubbers" at Bharathipuram in Yeroor Village of Pathanapuram Taluk. He was an asses-see under the Kerala General Sales Tax Act, 1963. The assessment for the years 1992-93 and 1993-94 was completed and Rs. 12,32,220 was levied as the tax due in addition to the surcharge of Rs. 1,21,322 was also levied. It appears that he filed an appeal and during the pendency of the appeal in the revenue recovery proceedings initiated against one acre and seven cents of land belonging to the defaulter was attached on January 19, 1997. The recovery proceedings were continued and the property was brought for sale on October 10, 2000. There was no bidders and therefore, Government themselves purchased the land as bough-in-land for Re. 1. Subsequently, the sale was confirmed by exhibit P1 order dated June 2, 2001.

(2.) Still later, on November 27, 2001 the appeal filed by the assessee was rejected by the appellate authority. However, in STA 207/2002, the Tribunal passed order dated November 8, 2002, remanding the matter to the first appellate authority. Accordingly the first appellate authority passed order dated April 1, 2004, directing the assessing officer to pass revised order.

(3.) Accordingly, on May 26, 2004, fresh order of assessment was passed with a total liability of Rs. 5,16,308 towards tax and surcharge. In the meantime, on February 9, 2004, Sri S. Suresh Babu expired and the recovery proceedings were continued against the sureties. Thereupon, the sureties filed appeals as STA Nos. 55 and 56 of 2005. By order dated February 2, 2007, appeals were disposed of modifying the assessment order and fixing the total liability of the assessee at Rs. 2,23,772. Thereafter, after adjusting the amount available to the credit of the assessee towards the exemption granted, exhibit P6 and P6(a) notices of demand were issued on March 16, 2005, calling upon the sureties to pay Rs. 3,850 towards the balance tax and the surcharge due. On receipt of the notice, the amount demanded was paid on March 16, 2005 itself and exhibit P7 is the receipt.