S MARTIN Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner is the owner of the house and land situated in Survey No. 226 T.S. II 11/ 1272 -2, bearing door No. 847, First Street, Gandhipuram, Coimbatore, measuring 2,052 Sq. ft. Mr. V.R. Ramaswamy, S/o. M.S.P. Veerappan, Vellaikinar Pirivu, G.N. Mills Post, Coimbatore, started lottery business under the name and style "Balaji Lotteries". He applied for registration under the Tamil Nadu General Sales Tax Act, 1959. As per Section 20 of the said Act he filed application in form D. The registering authority as a pre -requisite for granting certificate of registration, demanded security in form XIX -B. To oblige the said V.R. Ramaswamy, the petitioner furnished the above said house as security in form XIX -B.

(2.) WHILE so, the respondent has issued a notice No. 2160 of 2000 A3 dated October 24, 2002 addressed to the Balaji Lotteries and the petitioner informing that the petitioner's property to be auctioned at 11 A.M. on November 18, 2002 for collection of tax arrears of Balaji Lotteries to the tune of Rs. 2,00,29,646 and necessary notification was also effected in Coimbatore District Gazette dated April 27, 2002.

(3.) AS stated above the said V.R. Ramaswamy was solely running the lottery business in the name and style of the Balaji Lotteries and the petitioner has nothing to do with the business and he is not a defaulter. Hence, the property cannot be auctioned for the arrears of tax to be paid by Balaji Lotteries. As per proviso to Section 21(1 -A), the petitioner has furnished security in form XIX -B, covering a sum of Rs. 2,200 which the petitioner undertakes to pay and the impugned notice is liable to be quashed.