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HIGH COURT OF KERALA
Dinesh Kumar Singh, J
MUNEERU RAHAMAN, – Appellant
Versus
STATE OF KERALA, – Respondent
WP(C) 20723/2022
Revenue Recovery - Liability of Directors - The court dismissed the writ petitions challenging revenue recovery proceedings initiated against the petitioner, a director of a private company, for the recovery of arrears of tax and interest under the Kerala Value Added Tax Act, 2003. The court held that the directors of a private company are jointly and severally liable for the dues of the company under Section 39 of the Act, unless they prove that the non-recovery cannot be attributed to any negligence, misfeasance, or breach of duty on their part in relation to the affairs of the company.
Fact of the Case:
The petitioner, a director of a private company, challenged revenue recovery proceedings initiated for the recovery of arrears of tax and interest under the Kerala Value Added Tax Act, 2003.
Finding of the Court:
The court held that the directors of a private company are jointly and severally liable for the dues of the company under Section 39 of the Act, unless they prove that the non-recovery cannot be attributed to any negligence, misfeasance, or breach of duty on their part in relation to the affairs of the company. The court found no error of law or jurisdiction in issuing the impugned notices and dismissed the writ petitions.
Issues: Challenge to revenue recovery proceedings initiated against the petitioner, a director of a private company, for the recovery of arrears of tax and interest under the Kerala Value Added Tax Act, 2003.
Ratio Decidendi: Directors of a private company are jointly and severally liable for the dues of the company under Section 39 of the Act, unless they prove that the non-recovery cannot be attributed to any negligence, misfeasance, or breach of duty on their part in relation to the affairs of the company.
Final Decision: The writ petitions challenging the revenue recovery proceedings were dismissed by the court.
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 14TH DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945 WP(C) NO. 20716 OF 2022 PETITIONER/S:
MUNEERU RAHAMAN, AGED 41 YEARS SON OF MR.THAYIL MUHAMMED HAJI, NO.6, PUZHAYORAM VILLAS, ANAKKAYAM (PO), MANJERI, MALAPPURAM DISTRICT, PIN - 676 509.
BY ADVS.
SHAJI CHIRAYATH JIJI M. VARKEY M.K.SAFEELA BEEVI G.SAVITHA M.M.SHAJAHAN RESPONDENT/S:
1 STATE OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF TAXES, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695 001.
2 COMMERCIAL TAX OFFICER, CIRCLE NO.IV, OFFICE OF THE STATE GOODS & SERVICES TAX DEPARTMENT, OLD RAILWAY STATION ROAD, KARGIL LANE, KACHERIPADY, ERNAKULAM, PIN - 682 018.
3 DEPUTY TAHSILDAR (REVENUE RECOVERY), TALUK OFFICE ROAD, VAYAPPARAPADI, VELLARANGAL, MANJERI (PO), MALAPPURAM DISTRICT, PIN - 676 517.
BY ADV ADVOCATE GENERAL OFFICE KERALA OTHER PRESENT:
MS.RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14.02.2024, ALONG WITH WP(C).20723/2022, 20728/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 14TH DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945 WP(C) NO. 20723 OF 2022 PETITIONER/S:
MUNEERU RAHAMAN, AGED 41 YEARS, SON OF MR. THAYIL MUHAMMED HAJI, NO.6, PUZHAYORAM VILLAS, ANAKKAYAM (PO), MANJERI, MALAPPURAM DISTRICT, PIN-676509.
BY ADVS.
SHAJI CHIRAYATH JIJI M. VARKEY M.K.SAFEELA BEEVI SAVITHA GANAPATHIYATAN M.M.SHAJAHAN RESPONDENT/S:
1 STATE OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF TAXES, SECRETARIAT, THIRUVANANTHAPURAM ,PIN - 695001.
2 COMMERCIAL TAX OFFICER, CIRCLE NO. IV, OFFICE THE STATE GOODS & SERVICES TAX DEPARTMENT, OLD RAILWAY STATION ROAD, KARGIL LANE, KACHERIPADY, ERNAKULAM PIN - 682018. 3 DEPAUTY TAHSIDAR (REVENUE RECOVERY), TALUK OFFICE ROAD, VAYAPPARAPADI, VELLARANGAL, MANJERI (PO), MALAPURAM DISTRICT PIN- 676517.
BY MS.RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14.02.2024, ALONG WITH WP(C) NOS.20716/2022 AND 20728/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 14TH DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945 WP(C) NO. 20728 OF 2022 PETITIONER/S:
MUNEERU RAHAMAN, AGED 41 YEARS SON OF MR. THAYIL MUHAMMED HAJI, NO.6, PUZHAYORAM VILLAS, ANAKKAYAM (PO), MANJERI, MALAPPURAM DISTRICT, PIN-676 509 BY ADVS.
SHAJI CHIRAYATH M.K.SAFEELA BEEVI SAVITHA GANAPATHIYATAN M.M.SHAJAHAN RESPONDENT/S:
1 STATE OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF TAXES, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695 001.
2 COMMERCIAL TAX OFFICER, CIRCLE NO. IV, OFFICE THE STATE GOODS & SERVICES TAX DEPARTMENT, OLD RAILWAY STATION ROAD, KARGIL LANE, KACHERIPADY, ERNAKULAM, PIN - 682018.
3 DEPAUTY TAHSIDAR (REVENUE RECOVERY), TALUK OFFICE ROAD, VAYAPPARAPADI, VELLARANGAL, MANJERI (PO), MALAPURAM DISTRICT ,PIN- 676517 BY MS.RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14.02.2024, ALONG WITH WP(C) NOS.20716/2022 AND 20723/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
J U D G M E N T [WP(C) Nos.20716, 20723 & 20728 of 2022]
All the three writ petitions have been filed by the very same petitioner impugning the revenue recovery proceedings initiated by the 2nd respondent for recovery of arrears of tax, along with interest, under the provisions of the Kerala Value Added Tax Act, 2003 ('Act', for short) in respect of M/s.Thayyil Photographics Private Limited / M/s.Adams Photography & Technology Trading Private Limited, which was a registered dealer under the provisions of the Act and an assessee on the rolls of the 2nd respondent. The petitioner was one of the promoters and directors of the private Company, namely, M/s.Thayyil Photographics Private Limited / M/s.Adams Photography & Technology Trading Private Limited. Exts.P1 and P2 are
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