TMI Blog2005 (2) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assistant Commissioner (Assessment), Sales Tax Office Special Circle, Thiruvananthapuram. Penalty proceedings were initiated against him in respect of assessment years 1992-93 and 1993-94. Assessing Authority imposed a penalty of ₹ 24,01,476/- for the offence committed under Sub-section (1) of Section 45A. Notice to that effect was sent to him under Form No. 24A on 14.9.1994. On the same day another notice was also sent claiming an amount of ₹ 1,86,65,176/-. Since the amounts were not paid proceedings were initiated for sale of the properties. Consequently notice of sale in Form No. 16 dated 29.7.1996 was served on him claiming a total amount of ₹ 5,04,38,708/-. A communication was also sent by the Tahsildar on 13.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred to as Exts.P1 and P2 are sham documents brought into existence to defeat the interest of the revenue. Further it was also pointed out that those documents were registered at the Sub Registry Office, Ooroottambalam where as the property is situated outside the limits of the said Sub Registry Office. Further it was also pointed out that the properties were transferred in the name of the petitioner so as to escape from the liability. It was also stated in the counter affidavit that petitioner had filed a suit before the Munsiff Court, Neyyattinkara as O.S. No. 18 of 1996, which was dismissed and that fact was also not disclosed in the Writ Petition. Further it was also pointed out that by virtue of Section 26A there is a statutory charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with effect from 1.4.1993. Ext.P1 settlement deed was executed on 22.2.1994 and Ext.P2 sale deed was also executed on the same day, that is, after insertion of Section 26A of the Kerala General Sales Tax Act, 1963. 5. Section 26A was introduced by the State Legislature to get over the attempt of the assessee to create a charge on or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of his assets in favour of any other persons so as to get over any claim in respect of any tax or any other sum payable by the assessee under the Act. We are of the view State Legislature is competent to enact such provision in exercise of its legislative power under Entry 54 of List II of the 7t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to recover such arrear of public revenue by attachment and sale of the property so transferred, as if such transfer had not taken place: Provided that, before proceeding to attach such property the Collector or the authorised officer shall-- (i) give the defaulter an opportunity of being heard; and (ii) record his reasons therefor in writing. Explanation: For the purpose of this section, near relative includes husband, wife, father, mother, brother, sister, son, daughter, step-son, step-daughter, uncle, aunt, son-in-law, daughter-in-law, brother-in-law, nephew or niece of the transferor. The scope of above mentioned provision came up for consideration before a Division Bench of this Court in Kurian Mathew v. State of Ke ..... X X X X Extracts X X X X X X X X Extracts X X X X
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