9911796707
TMI Blog2012 (7) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... 16(10) of the Kerala Value Added Tax Act, 2003 (hereinafter referred to as, "the KVAT Act") for reasons, inter alia, that the dealer/ assessee had filed an insolvency petition and on his own showing was disabled from carrying on the business and if permitted to conduct business under cover of registration, the same would go against the interest of revenue of the State. The petitioner having unsuccessfully resorted to appellate remedies, is before this court raising questions of law regarding the legality of cancellation of the registration on the mere filing of an insolvency petition as also against the reasoning that the revenue interest of the State would not be served by the continued registration of the petitioner. 2. Before embarking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the recovery authority can attach movables and immovables of the appellant for recovery of arrears of tax. We, therefore, dispose of the writ appeal by directing the assessing officer to permit continuation of registration both under the KVAT and CST Acts after appellant remits Rs. 5 lakhs. So far as recovery is concerned, this judgment does not stand in the way of recovery during pendency of appeal. The assessing authority will ensure that the appellant complies with all other formalities for continuation of registration, failing which renewal granted under this judgment can be withdrawn." It is very evident that the retention of registration was allowed only on condition of the petitioner remitting rupees five lakhs and the renewal was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Tax Department. The conduct of the petitioner does not at all inspire this court. A concerted attempt to evade payment of tax as also to somehow continue the registration is very evident from the facts of the case. The petitioner has scant respect for rule of law or the orders of this court. 5. However, we are conscious of the fact that we are in revision called upon to decide a question of law raised by the petitioner. Both the appellate authorities found that the petitioner having himself approached a competent forum for being adjudged as an insolvent, the petitioner could not claim continued registration for doing business, since the revenue interest of the State, then, will be adversely affected. Both the appellate authorities hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such properties, except his books of accounts and those exempted under the Code of Civil Procedure 1908 or any other enactment. Section 20 also postulates a situation when the court admitting the petition, if it thinks fit, may appoint an interim receiver of the property of the debtor or any part thereof. The provisions of the Act would show that when the petition is admitted, though the debtor remains in possession of the properties shown in the schedule of assets, any adjudication is dependent on the petitioner's undertaking not to deal with the said property. 7. The fundamental principle on seeking an adjudication as to the solvency status of an individual is that the assets of the individual so seeking to be adjudged an insolvent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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