The Hindu : Front Page : High Court order puts State in a bind

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Friday, Nov 24, 2006
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High Court order puts State in a bind

C. Gouridasan Nair

THIRUVANANTHAPURAM: The Kerala High Court orders for mandatory acceptance of tax by sellers of outside lotteries by Friday afternoon has put the State Government in a fix.

The Government had filed an appeal against the High Court order of November 21 directing the Assistant Commissioner (Assessment), Commercial Taxes Special Circle, Palakkad, to receive the tax for December on production of the order. However, before the appeal reached the admission stage, the High Court has asked the Assistant Commissioner to appear in person before the Court at 1.45 p.m. on Friday and accept the Demand Draft for the tax directly from the lottery sellers. The Government, which has taken all steps to challenge the earlier order and decided not to accept the tax till the decision on the appeal is known, now has no other option but to accept the tax.

Justice K. Balakrishnan Nair, who issued the two orders, has however made his conditionally and stated that his direction would stand cancelled if stayed by a Division Bench of the Court. The Single Bench had issued the order in favour of the petitioners accepting their contention that no final order has been passed on the proceedings to cancel their licences. The petitioner, Megha Distributers, Palakkad, distributors of Sikkim State Lottery tickets in Kerala, had filed the interim appeal alleging that the Government was not accepting the advance tax despite the Court's directive.

The Finance Department has been going about meticulously in the case. It has already taken steps to realise tax arrears from some of the major players.

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