Kerala - Kozhikode   

Closure of textile shop ordered

Staff Reporter

On charges of obstructing audit officials

Kozhikode: In the first case of punitive action under the rules governing the Kerala Value Added Tax (KVAT) Act in the State, the sales tax authorities here have ordered the closure of a textile shop in the district for four months.

The Deputy Commissioner of Commercial Taxes K.J. Valsalakumari ordered the suspension of the registration of Soundarya Textiles at Vadakara under Section 15 of the KVAT Act on the charges of obstructing and threatening audit officials.

The charges framed against them were that the textiles proprietors had "prevented and obstructed and also abetted the prevention and obstruction of audit visit." They had violated the provision of Section 23 of KVAT Act read with rule 37 and 39 of KVAT Rules.

On April 4, the Assistant Commissioner T.V. Kamala Bai along with Commercial Tax Officers P.T. Venugopal, E.P. Meera Bai and V.K. Chandran visited Soundarya Textile for conducting audit of the books of accounts and the goods pertaining to the return period from April 2005 to March 2006. The above visit was after giving due intimation to the dealers, Ms. Valsalakumari said.

She told The Hindu here on Friday that the partners of the textiles firm Haris and N.K. Hashim were reluctant to make available the books of accounts for audit. Instead a large mob comprising more than 60 persons entered the office room where the officials were waiting and used abusive language against them. The officials were forced to retreat after 20 minutes due to the unruly situation.

The incident was recorded in the inspection register of the Commercial Tax Officer at Vadakara and also a complaint was lodged before the Vadakara Police Station.

Ms. Valsalakumari said that a reasonable opportunity was also given to the owners of the textile firm before going ahead with the suspension orders. In response to a notice the managing directors of the textiles Rasheed and Haris appeared in person and stated that they were not involved in the alleged incident and that they had produced the entire books of accounts before the audit party.

They also said that it was the members of the Vyapari Vyavasayi Ekopana Samiti that had gathered at the textiles and shouted against the officials. The allegations that the officials had been obstructed were baseless, they said. They also expressed their willingness to produce the books of accounts if a further opportunity was given to them.

However, after examining the facts, it was found that Vyapari Vyavasayi Ekopana Samiti members had assembled at the shop and surrounded the audit officials with the connivance of the textile firm partners. The complaint before the police was lodged for criminal intimidation, Ms. Valsalakumari said.

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