M. ABDUL AZEEZ Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Petitioner is an assessee on the rolls of the 1st respondent. He also has a branch at Kottayam. He filed his monthly returns before the 1st respondent and paid tax by way of account payee cheques. In respect of the tax due in relation to his Kottayam Branch, petitioner gave cheques of ICICI Bank, Kottayam. Those cheques were accepted by the 1st respondent and were encashed belatedly. Subsequently, 1st respondent passed Ext. P1 order, in which, for the belated realisation of the tax due from the petitioner, interest of Rs.12,40,468/- was levied. It is this order which is under challenge in this writ petition.

(2.) Counter - affidavit has been filed by the 1st respondent. In the counter - affidavit, details regarding the dates of receipt of the cheques, dates of its presentation for encashment, dates of encashment and number of days delay have been furnished. It is stated that there was no delay on the part of the 1st respondent in presenting the cheques for encashment. According to the 1st respondent, immediately on receipt of the cheques, 1st respondent send the cheques to the State Bank of Travancore, Manjeri for encashment. State Bank of Travancore, Manjeri send the cheques for encashment to ICICI Bank, Kottayam Branch and on that basis got the cheques encashed. In the process, there occurred delay and according to the respondents, the petitioner is liable to make good the loss sustained due to the delayed encashment of cheques by way of interest. It is therefore contended that Ext. P1 order levying interest is valid and proper.

(3.) Various contentions have been raised by the learned Senior Counsel for the petitioner and the learned Government Pleader appearing for the respondents.