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2021 (3) TMI 963 - MADRAS HIGH COURTLevy of Compounding Fee - detention of goods - Section 72(1)(a) of the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT:- The perversity writs large on the face of the order dated 06.2.2017. The second respondent has virtually abdicated his power as a Revisional Authority and all that he has done was extracting the entire objections filed by the appellant and held that the Roving Squad Officer collected one time compounding fee under Section 72(1)(a) of the Act and that therefore, the correct compounding fee had to be fixed and accordingly remitted the matter back to the first respondent. There is absolutely no discussion as to how the grounds raised by the appellant were not tenable and as to how the documents, which were filed by the appellant, were not admissible or sustainable. We have also seen the order of detention passed by the first respondent, in which, one of the grounds of detention was that the goods were transported from Mumbai to Chennai in the name of stock transfer 'with defective documents'. The first respondent did not state as to why, in his opinion, the documents produced by the appellant were defective. The first respondent has not recorded as to why the documents produced by the appellant cannot be accepted. If any clarification is required, the same could have been called for. Therefore, it is clear that the compounding notice dated 13.3.2016 is not only a non-speaking notice, but a notice in violation of the principles of natural justice, as the grounds raised by the appellant have not been considered by the first respondent - The same mistake was committed by the second respondent – the Revisional Authority, who is in the cadre of Joint Commissioner. A revisional power cannot be akin to appellate power and at best, the Revisional Authority can consider as to whether there was any procedural error committed by the Lower Authority, but would not be justified in re-appreciating the entire facts - This issue can never be set right by the Second Revisional Authority, who appears to be an officer in the cadre of Additional Commissioner. Having been satisfied with the facts and circumstances of the case, the order passed by the second respondent dated 06.2.2017 and the demand notice dated 03.3.2017 issued by the first respondent are unsustainable - petition allowed.
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