HC scraps action of tehsildar to recover tax with interest

Chhatrapati Sambhajinagar:

The Aurangabad Bench of Bombay High Court comprising Justice Nitin Sambre and Justice Santosh Chapalgaonkar has scrapped the process of collecting tax along with interest from the owner of Vrundavan Amusement and Water Park, nine years ago.

The action of serving notice was initiated by the Chakur tehsildar on the orders of the Financial Auditor (Mumbai) stating that the surcharge on the entertainment tax of Rs 5.63 lakh has been collected less.

It is learnt that the petitioner has deposited other taxes with the state government as per the rules framed by it. However, the revenue administration claimed more tax after scrutiny. Hence the petitioner informed the tehsildar that the new claim of tax is acceptable to him. However, the Principal Accountant General ordered the tehsildar to collect the tax amount again with interest.

Acting upon the orders, the Chakur tehsildar issued an order to the petitioner, to recover the tax amount, on November 18, 2014. The petitioner then challenged the tehsildar’s order in the High Court through Adv Suhas Urgunde and Adv Vidya Urgunde.

Adv Urgunde during the argument brought to the notice of the court that the notice issued by the tehsildar is illegal as per the Bombay Entertainments Duty Act. He also mentioned that more than Rs 3 lakh amount is also deposited in the tehsil office. The assistant government pleader Shirish Sangle, on behalf of the government, however, justified the action. The court after evaluating clarified that the notice was served to the petitioner without implementing the parameters of natural justice and an opportunity for a hearing was not given. Hence the High Court ordered to cancel action process initiated by the Chakur’s tehsildar.