Conditional instalment relief and partial release of attachment granted to secure admitted tax dues and restore registration.

Admitted tax dues may be secured through attached property while the taxpayer is allowed structured payment relief. The Court accepted a conditional arrangement under which the petitioners were to deposit the first tranche within one month from sale of the agricultural land, after which attachment over that land would be lifted and the firm's registration certificate restored. The remaining residential and other identified properties were kept under attachment until full discharge of the admitted dues with statutory interest in instalments, with default exposing the attached properties to sale and continued revenue recovery.

---

---

Issues: (i) whether the petitioners were entitled to release of attachment over the agricultural land on depositing a part of the admitted tax dues and to permission to clear the remaining liability by installments; (ii) whether the registration certificate of the firm could be restored on such deposit and whether the attachment could continue over the remaining properties until full payment.

Issue (i): whether the petitioners were entitled to release of attachment over the agricultural land on depositing a part of the admitted tax dues and to permission to clear the remaining liability by installments.

Analysis: The petitioners admitted the tax liability and placed an undertaking to deposit Rs. 4.51 crores within one month by selling the agricultural land already under attachment. The Court also noted the admitted outstanding dues, the financial difficulty stated by the petitioners, the availability of other properties, and the affidavits of the co-owners consenting to sale and attachment. In those circumstances, the Court accepted the request for structured payment of the dues and directed continuation of attachment only until the stipulated deposit was made.

Conclusion: The petitioners were permitted to deposit Rs. 4.51 crores within one month and, on such deposit, the attachment over the agricultural land was directed to be lifted.

Issue (ii): whether the registration certificate of the firm could be restored on such deposit and whether the attachment could continue over the remaining properties until full payment.

Analysis: The Court linked restoration of the registration certificate to the initial deposit of Rs. 4.51 crores and preserved the revenue's security by continuing attachment over the residential and other identified properties until the entire admitted dues with statutory interest were paid in six monthly installments. The Court further directed that if any of the remaining properties were sold and the sale proceeds were deposited, attachment over that property would be lifted, while default in payment would revive the department's liberty to sell the attached properties. The arrangement was made conditional on compliance with the undertakings filed by the petitioners and co-owners.

Conclusion: The registration certificate was directed to be restored on deposit of Rs. 4.51 crores, and the remaining properties were to remain under attachment until full discharge of the dues, failing which the adverse consequences stipulated by the Court would follow.

Final Conclusion: The petition succeeded only to the extent of obtaining conditional instalment relief, partial lifting of attachment, and restoration of registration upon the first deposit, while the revenue's security over the remaining dues was preserved.

Ratio Decidendi: Where the liability is admitted and adequate security is available through attached or consented properties, the Court may grant conditional instalment relief and regulate attachment and restoration of registration to secure realization of the tax dues.

---