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2008 (3) TMI 637 - HC - VAT and Sales TaxContinuance of the waiver scheme of the deed of the agreement, dated July 12, 2006 entered into between the Government of Tamil Nadu and the petitioner and for further orders Held that:- If the petitioner had already exercised their option to continue under the waiver scheme, but simultaneously resorted to collection of tax contrary to rule 16(4) of the TNVAT Rules, 2007, and the terms of the agreement, etc., then, this court cannot approve such action of the dealer, for the reason that court cannot read anything into a statutory provision, substitute or rewrite the provision, which would snap the VAT chain from January 1, 2007 onwards. Neither the terms of the agreement nor the statutory provisions under section 33(1) of the TNVAT Act read with rule 16(4) of the VAT Rules, contemplate operation of waiver/deferral schemes in different spells, while implementing the provisions of the VAT Act and the Rules framed thereunder and such a situation would certainly create anomaly. As stated supra, liability to pay is statutory, failure to remit in time entails penal action under the taxing statutes. Retention of Government money collected towards tax attracts penal action and therefore, there is no need to issue any show-cause notice and provide an opportunity of hearing before taking recourse to realise the dues. Having availed the waiver scheme, the petitioner ought not to have collected tax from the dealers and therefore, they are liable to remit the same to the Government. In view of the above,do not find that there is any abuse of the statutory provisions by the respondents to extract money from the assessee. In the result, the writ petition is dismissed.
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