WP/44793/2016 of Tvl.KLT Automotive and Vs The Assistant Commissioner(CT) on 29 December 2016

1. The Assistant Commissioner(CT), Hosur (North) Assessment Circle, Hosur.

2. The Branch Manager, HDFC Bank,

Fort-Nanik Motwanimarg Branch,

Fort Mumbai – 400 001... Respondents

Writ Petition has been filed under Article 226 of theConstitution of India, praying for a Writ of Certiorari to callfor the records on the file of the first respondent in TIN/CST.No.333133322462- notice of attachment in Form U dated 15.12.2016on the 2[nd] respondent and quash the same as being withoutjurisdiction and authority of law and contrary to theprinciples of natural justice.

By consent, the main writ petition itself is taken up forfinal disposal.

2. Seeking to quash the notice of the 1[st] respondent dated15.12.2016, the petitioner has filed this writ petition.

https://hcservices.ecourts.gov.in/hcservices/

3. The case of the petitioner is that it is the manufacturerof chassis frame assembles and mild steel tubes for automobilesCompany and having three manufacturing plants and two depots allover India. The petitioner is registered as a dealer under theTNVAT Act, 2006, as well as CST Act, 1956 since 2006 onwards atHosur and the petitioner is promptly filing monthly return inForm-I every month with payment of tax due without any defaulttill hitherto. Due to unavoidable financial crisis in the monthof February, 2016, the petitioner could not mobilize the fundsfor payment of tax for the month of March, 2016, for the reasonthat there was delay in payment by the buyers who were alsosimilarly placed under financial crisis. Therefore, thepetitioner made a request to the 1[st] respondent on 28.04.2016 togrant reasonable time for payment of the entire tax amount inequal monthly instalments. But all of a sudden, the petitionerwas informed by the 2[nd] respondent Bank that his bank account wasattached by the 1[st] respondent by way of issuing attachmentnotice dated 15.12.2016 without even marking a copy of suchattachment notice to the petitioner. Hence, the petitioner hascome forward to file this writ petition.

4. Even though the petitioner has challenged the notice ofthe 1[st] respondent dated 15.12.2016, he submitted that he iswilling to pay the entire amount in instalments.

5. Learned Additional Government Pleader appearing for the1[st] respondent submitted that the 1[st] respondent has no objectionin receiving the amount in instalments but in order to provetheir bonafide, substantial amount has to be paid.

6. Learned counsel for the petitioner submitted that thepetitioner agreed to pay a substantial amount of Rs.50 lakhs intwo instalments commencing from January, 2017, apart from payingthe remaining amount together with interest in thirteen equalmonthly instalments commencing from March, 2017.

7. Taking note of the submissions made by both parties,this Court directs the petitioner to pay a sum of Rs.25,00,000/-(Rupees Twenty Five Lakhs only) on or before 28.01.2017 and thesecond instalment of Rs.25,00,000/- (Rupees Twenty Five Lakhsonly) on or before 28.02.2017. The remaining amount shall bepaid in twelve equal monthly instalments from March, 2017onwards before the last working day of every month and theinterest amount shall be paid as the fifteenth instalment on orbefore 28.03.2018. If the petitioner fails to pay any one of theinstalments within the time stipulated supra, the original orderimpugned will revive and it is open to the respondents toproceed against the petitioner in accordance with law. Onpayment of first instalment of Rs.25,00,000/- (Rupees TwentyFive Lakhs only), the attachment shall be lifted.

8. With the above direction, the writ petition is disposedof accordingly. No costs. Consequently, the connectedmiscellaneous petitions are closed.

Sd/-

Assistant Registrar(CS II)

//True Copy// Sub Assistant RegistrarvsiTo1. The Assistant Commissioner(CT), Hosur (North) Assessment Circle, Hosur.2. The Branch Manager, HDFC Bank, Fort-Nanik Motwanimarg Branch, Fort Mumbai – 400 001.+1cc to Mr.R.Senniappan, Advocate, S.R.No.76469+1cc to the Special Government Pleader(T), S.R.No.76464 Writ Petition No.44793 of 2016SKV(CO)CA(30/12/2016)