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2016 (1) TMI 1116 - HC - VAT and Sales TaxRecovery of dues - power of enforcement wing officials to collect cheques - The Commissioner has also issued circulars following the directions of this Court. It appears that the orders as well as administrative instructions have only fallen on deaf ears and as a result, many writ petitions are being filed on similar grounds. - Non-submission or delayed submission of 'C-Forms' - Reversal of input tax credit Held that:- The power to levy and demand tax is conferred by the statute and not by consent of the assesse. Any tax levied or demanded must be with the authority of law, otherwise, such a levy would be against the constitutional mandate in Article 265 of the Constitution. In the present cases, the petitioner has submitted their objections claiming that there is no stock difference and that the cheque was collected by force. Therefore, the assessing officer is duty bound to look into the books of accounts, documents and verify the claim of the assesse before passing orders. This Court has time and again held that the enforcement wing officials have no authority to collect cheques. Their duty under Section 65 of the TNVAT Act is limited to inspection and drawing of a report. As per Section 65 (3), the enforcement wing officials, even when they discover that there is an attempt to evade tax, they can only seize the records for the purpose of enquiry. However, the demand can be made only after assessment and that has to be in accordance with law by the assessing authority. Therefore, It is very clear that the enforcement wing officials cannot usurp the powers of the assessing officers and collect cheques. Therefore, the petitioner is entitled to refund of the cheque amount.
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