Excelsior Correspondent
JAMMU, Dec 11: Division Bench of High Court comprising Chief Justice M M Kumar and Justice Hasnain Massodi today expressed displeasure over slow pace of recovery of Sales Tax arrears worth crores of rupees from the defaulters and issued various directions to the official respondents.
After hearing Senior Advocate Sunil Sethi along with Advocate Deewkar Sharma for the PIL filed by Balvinder Singh and others and Senior Additional Advocate General Gagan Basotra for the State, DB expressed its displeasure over the slow pace of recovery and remarked, “status report reveals something but conceals much more”.
Expressing deep concern over the non-traceable defaulters, the DB observed, “according to the status report the total amount recoverable from non-traceable defaulters is Rs 23.44 crore from Jammu and Rs.78.80 crore from Kashmir division”, adding “from the list of non-traceable defaulters it comes to the fore that some of the non-traceables are well known persons of the society”.
“During the proceedings, it has been pointed out that M/s Mattoo Worsted Spinning & Weaving Mills Pvt. Ltd belongs to Gh Rasool Mattoo and business concern is well known identity in Kashmir division. Likewise, M/s Niaz Ahmad Mubeen, Sonwar falls in the same category. There are similar other names in the list”, the DB said in the open court.
“It is surprising as to how such concerns could be shown as non-traceables unless there is connivance at the lower rank. Skelton story is obvious from the status”, the DB said and directed the Commissioner, Commercial Taxes to take effective steps by unmasking the real faces rather than allowing them to take refuge.
While referring to the latest status report, DB observed, “out of total arrears in Jammu division amounting to Rs 302.73 crore an amount of Rs 75.78 Crore has been recovered. In respect of Kashmir division, Rs 49.12 crore has been recovered against the total arrears of Rs 313.19 crore. The arrears recoverable from Government/semi-Government departments are to the tune of Rs 7.66 crore in Jammu division and Rs 59.39 crore in Kashmir division and the list of the Government/semi-Government departments shows that against huge recovery only minimal amount is being paid in installments”.
The DB quoted the example of J&K Minerals case wherein against arrears of Rs 3,38,48,317 recovery of only Rs 4 lakh has been made up to November 20, 2013. “As per the information furnished by Senior AAG Basotra, J&K Minerals is paying Rs 2 lakh per month. Likewise, other organizations are paying a very small amount”, the DB observed.
The Division Bench also took note of the defaulters belonging to migrant category and observed that Commissioner Commercial Taxes has sent a request to the Relief and Rehabilitation Commissioner, Jammu to expedite information with regard to migrant dealers as was earlier sought by the Deputy Commissioner, Commercial Taxes Recovery, Kashmir. “A list of migrant dealers was provided to the Relief and Rehabilitation Commissioner, Jammu. However, Relief and Rehabilitation Commissioner has not furnished the requisite information to the Commissioner, Commercial Taxes or to the Deputy Commissioner, Commercial Taxes (Recovery), Kashmir and the process of recovery of arrears against the migrant dealers could not generate the desired result”, the DB said.
Division Bench directed Relief and Rehabilitation Commissioner, Jammu to furnish the desired information as per the communication sent by the Commissioner, Commercial Taxes within a period of two weeks and in case the needful was not done then the Relief and Rehabilitation Commissioner, Jammu shall remain present in the Court to explain his conduct.
The Court also expressed its annoyance over the Commercial Taxes Department being slow towards Government/semi-Government organizations and remarked, “it does not need emphasize that the various projects of the State Government cannot progress unless the finances are available which can be possible only if taxes are paid on time”. “We fail to understand why there is slow paddling for making recoveries from the Government/semi Government organizations”, the DB added.
On the suggestion of Senior Advocate Sunil Sethi, Division Bench directed Commercial Taxes Department to furnish the list of such defaulters so that Court may analyze what reasonable course be taken to effect recovery from such organizations/semi-Govt departments.
With regard to the dealers from outside the State, Division Bench took serious note of the laxity on the part of the Sales Tax Department and said, “it seems that Commercial Tax Department did not take effective steps to establish the identity of such dealers by recording addresses of their origin”. The DB impressed upon Commissioner, Commercial Taxes that all concerned be sensitized with the procedure required to be followed. “If necessary, such officers/official may be given some capsule course in order to make them alive about their responsibility as per law so that no dealer is able to commit default in the first instance and recoveries are made effectively”, the DB added.
With these observations and directions, the Division Bench directed Commercial Taxes Department to file a fresh status report before February 5, 2014.
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