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2015 (1) TMI 1291 - HC - VAT and Sales TaxHarassment of the petitioner - demand of VAT illegally - Estimation of turnover escaped from VAT - Bihar Value Added Tax Act, 2005 - in view of the inspection report, it was estimated that in two years the petitioner must have made turnover of a sale of ₹ 36,00,000 and taking a minimum amount the tax was calculated at ₹ 1,44,000/- and penalty of the same amount was imposed under Section 28 of the Act. Held that:- In our view, the report of the District Magistrate, Khagaria clearly goes to show that there was only one shop at the location, Station Road, Khagaria by the name of Shiv Shiva Readymade Dresses. It is also not in dispute that the petitioner has obtained registration certificate under the Bihar VAT Act and has TIN number duly allotted under the said Act by the name of Shiv Shiva Readymade Dresses. Once these two facts are taken into consideration, it is evident that the officers of the Commercial Tax Department have acted in this matter only to harass the petitioner with motive known only to them. If the basic fact remains that the shop was being run in the name of Shiv Shiva Readymade Dresses, which fact has been verified by an authority no less than the District Magistrate, Khagaria, then every statement made in the impugned order of the Commercial Tax Officer is based entirely on conjectures and surmises and does not have any basis to support the same. If it is a case of evasion of tax then appropriate provisions of the Bihar Value Added Tax ought to have been applied for proceedings against the petitioner but no action could have been taken under Section 28 of the Act treating the petitioner as a dealer having no registration certificate. - writ applications allowed - Decided in favor of assessee.
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