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2016 (7) TMI 991 - HC - VAT and Sales TaxPower to levy penalty - petitioner refers to Section 67(3)(b)(i) and (ii) of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) and submits that the officer is entitled to only call upon the petitioner to pay the tax and there is no power to levy the penalty. Held that:- The order has been passed by the detention officer, who detained the goods and he has exercised his power under Section 67(3)(b) of the TNVAT Act and released the goods. This is evident from the impugned order itself that he has exercised his power under the said provision. Therefore, he could have directed the petitioner to pay tax and released the goods and left it open to the petitioner to work out other remedies available under the Act. However, this was not done by the respondents. The amount collected from the petitioner cannot be treated as penalty, but should be treated as tax. Accordingly, the writ petition is disposed of by directing the respondents to treat the remittance made by the petitioner, i.e., ₹ 2,29,680/- as tax and it is left open to the petitioner to work out his remedies available under the Act in the event they claim for adjustment.
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