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Judgment
Ms. V. Vidya, the learned High Court Government Pleader is directed to take notice for respondents. This matter listed for preliminary hearing is heard finally by consent and disposed of by this order.
The petitioner is a registered dealer under the Karnataka Sales Tax Act (''Act'' for short). The assessing authority (the first respondent) filed an application under Section 13(3)(b) of the Act before the second respondent for recovery of Rs. 3,25,387/- due as tax for the periods 1982-83 to 1985-86 in C. Mis. No. 2042 of 1993. On 26-3-1994, the second respondent ordered attachment of the movables of the petitioner (machineries) by locking the premises. In pursuance of the said order, on 2-4-1994, the third respondent attached the movables by locking four rooms in petitioner''s premises. On 4-4-1994, the 2nd respondent directed the third respondent to retain the attached movables till further orders. The result is four rooms of the petitioner''s premises are sealed and petitioner is not in a position to use them, causing great hardship.
Feeling aggrieved by the said order dated 26-3-1994, the petitioner has filed these petitions. The grievance of the petitioner is that attachment of the movables does not mean locking the premises itself. The other grievance is that the petitioner was not at all aware of the assessment orders and the petitioner cannot be expected to pay the entire amount in one lumpsum.
When the matter came up for consideration, the learned counsel for the petitioner submitted that the petitioner is ready to pay a sum of Rs. 1,50,000/- within 10 days and another sum of Rs. 15,000/- within one month and the balance of Rs. 1,60,387/- within three months. He also submitted that on payment of the first instalment of Rs. 1,50,000/-, the locks may be removed and the movables may be delivered back to the petitioner so that petitioner can make use of the machinery.
The learned counsel appearing for the respondents submitted that adequate safeguards be made for the prompt payment of the amounts due.
In view of the foregoing these petitions are disposed of subject to the following conditions:
(a) Petitioner shall pay Rs. 1,50,000/- within a period of 10 days from this day;
(b) Petitioner shall pay the further sum of Rs. 15,000/- within a period of one month from this day;
(c) Petitioner shall pay the balance of Rs. 1,60,387/- within a period of three months from this day;
(d) On payment of Rs. 1,50,000/- within 10 days from this date and subject to the petitioner filing an affidavit undertaking that it will not dispose of such movables until the entire balance is paid, respondents 1 and 3 shall remove the locks in regard to the four rooms and deliver back the attached movables to the petitioner;
(e) In view of the above, the proceedings before the second respondent are stayed for a period of three months from this day. If the petitioner commits default in paying any of the instalments the stay granted shall stand automatically vacated and the second respondent shall proceed with the C. Mis. No. 2042 of 1993 in accordance with law for recovery of amounts.
It is hereby made clear that nothing contained herein shall come in the way of the petitioner challenging the orders of assessment in appeal, if permissible under law and limitation. It is needless to say that if the petitioner succeeds in such appeals, the petitioner will be entitled to seek refund of the amounts paid.
Ms. V. Vidya, the learned Government Pleader is permitted to file memo of appearance within six weeks.