HOTEL SANGAM Vs. ASSISTANT COMMISSIONER, NETHAJI ROAD CIRCLE

JUDGEMENT

(1.) THIS writ petition is filed for issuance of certiorarified mandamus, to call for the records relating to the impugned order passed by the first respondent and to set aside the same and also to direct the second respondent to remove the encumbrance created pursuant to the communication of the first respondent dated January 30, 2009 in respect of the property of the petitioner situated in T.S. No. 444 to an extent of 3321 sq. ft., including the building, Kakka Thoppu Street, Madurai Town. Case of the petitioner in brief is as follows:

(2.) RESISTING the said averments, the first respondent filed a counter -affidavit stating that the impugned order was passed, on the requisition sent to the second respondent, for creating the "encumbrance of attachment" of the landed property at T.S. No. 444, measuring to an extent of 3321 sq. ft., Kakka Thoppu Street, Madurai Town and the building in which the "Lodge Sangam" was functioning, towards the arrears of sales tax held by the following sister concerns:

(3.) EVEN thereafter, the assessee, Sri Mappillai Vinayagar Roller Flour Mills have to pay arrears of tax along with deferral tax amount to the Government aggregating Rs. 15,95,639 apart from interest at two per cent for each month of default. Even after the release of the immovable property belonging to Sri Mappillai Vinayagar Cine Complex, no further arrears were realisable and the sales tax due stood as on date intimated by way of several notices to the petitioner. Since the assessee defaulted the deferred tax amount and the interest leviable for the earlier payment arrears of Rs. 5,95,963, the immovable property of Hotel Sangam (partnership firm) was proposed for attachment under the provisions of the Revenue Recovery Act on the fact that the hotel property was owned by the very same partners. In order to recover the revenue, the letter of requisition was sent to the District Registrar of Registration Department for creating encumbrance. All the abovesaid business concerns are mostly owned by a few partners and directors within family relationship and all the abovesaid spinning mills and flour mills are now idle and defunct without transacting any business but having very huge arrears right from the filing of W.P. (MD) No. 159 of 2008 (Sri Mappillai Vinayakar Cine Complex v. Commercial Tax Officer, Madurai : (2008) 14 VST 459 (Mad); (2008) 146 Comp Cas 110 (Mad)) and there was no way of settlement of dues even under the "Samadhan Scheme" of the year 2011 announced by the Government, which expires on April 30, 2012. The amount of Rs. 15,95,639 payable by the assessee Sri Mappillai Vinayagar Roller Flour Mills could be realised by the Government by way of attaching the immovable property of the Hotel Sangam, whereas the recovery of dues of both spinning mills are to be separately charged against the properties of the respective assets of the said companies according to the legal provisions and recovery process have already proceeded separately.