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| PIL for recovery of sales tax arrears | | HC expresses displeasure over slow pace of recoveries | | Early Times Report
Jammu, Dec 11(JNF): In a Public Interest Litigation filed by Balvinder Singh & Ors regarding recovery of Sales Tax & Vat from all the defaulters, who had failed to pay the sales tax under the J&K General Sales Tax Act and J&K VAT Act, Division Bench of the state High Court comprising Chief Justice MM Kumar and Justice Hasnain Massodi after hearing Senior Advocate Sunil Sethi along with Adv Deewkar Sharma for the PIL and Senior Additional Advocate General Gagan Basotra for the state, expressed its displeasure over the slow pace of recovery and observed that the status report reveals something and conceals much more.
Division Bench expressed its deep concern about the non-traceable defaulters and according to the status report the total amount recoverable from non-traceable defaulters is Rs.23.44 Crores Jammu and Rs.78.80 Crores from Kashmir Division. After going through the status report, DB said that from the list of non-traceable defaulters it comes to the forefront that some of the non-traceables are well known persons of the society. During the proceedings, it has been pointed out that M/S Mattoo Worsted Spinning & Weaving Mills Pvt. Ltd belongs to Gh.Rasool Mattoo and aforesaid business concern is well known identity in Kashmir Division. Likewise M/s Niaz Ahmad Mubeen, Sonwar Srinagar again falls in the same category. There are similar other names in the list. Division Bench after noticing this observed in the open Court that court is surprised as to how such concerns could be shown as non-traceables unless there is connivance at the lower rank. Skelton story is obvious from the status and directed the Commissioner, Commercial Taxes to take effective steps by unmasking the real faces rather than allowing them to take refuge under the ficus of legal procedure.
Division Bench after referring to the latest status report observed that out of total arrears in Jammu Division amounting to Rs.302.73 Crore an amount of Rs.75.78 Crore has been recovered. In respect of Kashmir Division the total recovery was Rs.313.19 Crore and Rs.49.12 Crore has been recovered. This recovery has been made from November, 2011 to November, 2013. However, in column 5 arrears recoverable from government/semi-government departments have been depicted which amount is Rs.7.66 Crore in Jammu Division and Rs.59.39 Crore in Kashmir Division and the list of the government/semi-government departments shows that against huge recovery only minimal amount is being paid in installments. For example J&K Minerals is in arrears of Rs.3,38,48,317/- and the recovery made upto 20.11.2013 is only 4.00 lac as. As per the information furnished by Senior AAG Basotra, J&K Minerals is paying Rs.2.00 lac per month. Likewise other organizations are paying a very small amount.
Division Bench also took note of the defaulters belonging to migrant category and according to the status report migrant dealers have two segments, one who belong to Jammu and others who belong to Kashmir Division. Division Bench had on the last date of hearing issued directions that their addresses should be obtained from the relief and rehabilitation commissioner Jammu so that recovery could be affected from them. While referring the status report, Division Bench observed that Commissioner, Commercial Taxes has sent a request to the Relief and Rehabilitation Commissioner, Jammu to expedite information with regard to migrant dealers as was earlier sought by the Deputy Commissioner, Commercial Taxes Recovery, Kashmir. A List of migrant dealers was provided to the Relief and Rehabilitation Commissioner, Jammu. However, Relief and Rehabilitation Commissioner has not furnished the requisite information to the Commissioner, Commercial Taxes or to the Deputy Commissioner, Commercial Taxes (Recovery), Kashmir and the process of recovery of arrears against the migrant dealers could not generate the desired result and Upon this Division Bench directed Relief and Rehabilitation Commissioner, Jammu to furnish the desired information as per the communication send by the Commissioner, Commercial Taxes. The needful shall be done within a period of two weeks and in case the needful is not done then the Relief and Rehabilitation Commissioner, Jammu shall remain present in the Court to explain his conduct.
Division Bench also expressed its annoyance about the inaction of the commercial taxes department for being slow towards government/semi-government organizations and observed that how such organizations can pocket the amount of commercial/sale taxes, which have been recovered from the consumers and not paid/deposited in the appropriate heads of the taxes. It does not need emphasize that the various projects of the State Government cannot progress unless the finances are available which can be possible only if taxes are paid on time. Division Bench further said that Court fails to understand why there is slow paddling for making recoveries from the government/semi government organizations.
On the suggestion of Senior Advocate Sunil Sethi, Division Bench directed Commercial Taxes Department to furnish the list of such defaulters so that Court may analyze what reasonable course be taken to effect recovery from such organizations/semi-govt depts.
Another aspect according to the status report with regard to the dealers from outside the state of J&K, Division Bench after taking note of the laxity on the part of the sales tax department did not take effective steps to establish their identity by recording addresses of their origin and may feel content with the addresses of the leased premises. The provisions of the Sales Tax Act and the Rules make it mandatory in such cases that not only inspection by personal visit of the officer concerned is required to be undertaken but all the codal formalities have to be completed before registering any dealer including residence of the State of J&K. Division Bench impressed upon Commissioner, Commercial Taxes that all concerned be sensitized with the procedure required to be followed. If necessary, such officers/official may be given some capsule course in order to make them alive about their responsibility as per law so that no dealer is able to commit default in the first instance and recoveries are made effectively. With these observations and directions, the Division Bench directed Commercial Taxes Dept to file a fresh status report on the aforementioned issues before the February 5, 2014. |
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