9911796707
TMI Blog2007 (7) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994. It is the case of the petitioner that they are regularly submitting their returns and paying taxes from the date of inception of the company. They further submitted that there is no dispute with regard to turnovers and taxes, to be paid as per A1 return filed by them. It is also the case of the petitioner that due to heavy setback in the business, the petitioner-company faced severe financial crises from the year 2000 onwards and they are liable to pay tax for the assessment years 2004-05, 2005-06 and 2006-07, which are detailed hereunder: Years TNGST Act CST Act Total 2004-05 1,13,355 1,78,710 2,92,065 2005-06 1,16,290 6,54,490 7,70,780 2006-07 4,16,011 3,54,458 7,70,469 6,45,656 11,87,658 18,33,314 The petitioner has further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re financial constraint for the last few years and at this stage, if the attachment of bank accounts is not lifted, the reputation of the company would be at stake and the company may not be in a position to survive. Under such circumstances, he prayed for suitable directions to the respondent to lift the bank attachment, so as to enable the company to operate the bank account and discharge the entire arrears of tax by the end of this month. The respondent has filed a detailed counter-affidavit and submitted that the writ petition is filed against the notice issued under section 26 of the TNGST Act, 1959 for collection of admitted tax from the monthly returns filed by the petitioner-company for the assessment years 2004-05, 2005-06 and 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the petitioner-company have shifted their registered office at No. 100-A, Basin Road, Tiruvottiyur, Chennai, to some other place. Coming to know that the petitioner is operating another bank account and running the company, on instructions, a team of officials went to that business place on June 27, 2007, with regard to the collection of taxes due and insisted the petitioner to pay the arrears of tax. Since the petitioner-company has not paid any amount, the respondent has issued another notice to the bankers, viz., the State Bank of India, Tiruvottiyur, on the same day under section 26 of the TNGST Act for collection of tax amount due from the petitioner and the copy was also marked to the petitioner. On receipt of the notice, the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to March 2007 were acknowledged by the petitioner, payments have not been made to clear the arrears of tax. About 13 cheques have been given by the petitioner on various dates and all the cheques have been dishonoured by the bankers. Naturally, left with no other alternative, the respondent has taken recourse to section 26 of the TNGST Act and issued notice to the petitioner's banker, viz., the State Bank of India, Travancore, for recovery of tax dues. The said bank has sent a pay order for Rs. 7,878.99 which was available in the credit of the petitioner's account. The petitioner had shifted their registered office at No. 100-A, Basin Road, Tiruvottiyur, Chennai to some other place. No sooner the respondent came to know that the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as early as on July 1, 2004 and that the petitioner should have realised their mistake and started paying the arrears of admitted tax to show their bona fide. Even thereafter, the petitioner had been continuously issuing cheques, ignoring the fact that prosecution can be launched against them under the provisions of the Negotiable Instruments Act. There is no bona fide on the part of the petitioner in fulfilling the statutory obligation. In view of the above, the action taken by the respondent for realisation of the arrears of tax by attaching the bank accounts of the petitioner cannot be found fault with and there is no illegality. Equity cannot be extended to a person who has not only been evading to pay tax, but also issued cheques, kn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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