Kerala HC Directs GST Dept to Trace & Return Original Title Deed Furnished as Security, Orders Certificate If Irretrievably Lost [Read Order]
The court directed the GST Department to trace and return the original title deed furnished as security and ordered issuance of a certificate if the document is found to be irretrievably lost.
In a recent ruling, the Kerala High Court directed the State GST Department to trace and return the original title deed furnished by a taxpayer as security during appellate proceedings under the Kerala Value Added Tax Act and ordered that if the document could not be traced, the Department must issue a certificate stating that the title deed was irretrievably lost from its custody.
M/s. Bash-P-International (petitioner) had obtained a stay of recovery from the First Appellate Authority on the condition that 25% of the disputed amount be paid and security be furnished for the balance amount. In compliance with the stay order, the petitioner remitted the required amount and executed a Form 6A bond by submitting the original title deed of its property to the Assessing Authority, along with a covering letter acknowledging the submission.
Subsequently, the appeal filed by the petitioner was allowed and the assessment order was modified in its favour. The Department’s further challenge before the Tribunal was dismissed, as a result of which the appellate order became final.
After the conclusion of the proceedings, the petitioner requested the return of the original title deed. However, the tax authorities informed the petitioner that the title deed and the bond could not be traced from their records.
Aggrieved by the failure of the Department to return the document, the petitioner approached the High Court seeking appropriate directions. The respondents argued that the original title deed was never received by them and relied on internal records to support their stand.
After considering the materials placed on record, the single-judge bench of JusticeZiyad Rahman A.A. observed that the Form 6A bond executed by the petitioner clearly referred to the deposit of the original title deed as security. The court also examined the acknowledgment produced by the petitioner and found that it contained an endorsement from the concerned authority indicating receipt of the covering letter referring to the title deed.
The court explained that the documents on record clearly showed that the original title deed had been furnished to the Department. The court pointed out that once the authorities accepted the document as security, it was their duty to keep it in safe custody and return it after the proceedings were concluded.
The mere inability of the Department to trace the document could not defeat the petitioner’s claim. The court directed the concerned officer to make every effort to trace and return the original title deed to the petitioner within one month.
The court further directed that if the document could not be traced within that time, the authorities must issue a certificate stating that the original title deed was irretrievably lost from the custody of the Department, so as to enable the petitioner to take alternate steps.
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