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2020 (5) TMI 499 - HC - VAT and Sales TaxLevy of compounding/composition fees - release of detained goods - It is the case of the petitioner that the 1st respondent erred in passing the impugned order which are titled as “Notice” by calling upon the petitioner to pay the aforesaid amounts as compounding/composition fee in lieu of prosecution as the 1st respondent has no jurisdiction to pass such orders under section 72 of the Tamil Nadu Value Added Tax Act, 2006 - HELD THAT:- As per Section 67(4) of the Act, if the tax is paid or the security is furnished, then the goods so detained shall be released forthwith. Thus, the officers at the check post/barriers are the proper officers empowered to call upon the driver or the person in charge of the vehicle/boat to pay tax or to furnish adequate security in such form and in such manner and to such authorities as may be prescribed, on behalf of the person liable to pay tax. It is only on payment of such tax, the detained goods can be released - In fact the petitioner or the purported owner who importer as the case may be ought to have paid the tax and got the goods released. There is no necessity to file a writ petition. Instead, the petitioner espoused the cause of the purported owner (importer) by filing a writ petition directly before this court. It was altogether unnecessary in the light of the fact that the authorities acting under the act are duty bound to release the goods on payment of tax as per section 67 (4) Of the Tamil Nadu Value Added Tax Act, 2006. There is no difficulty in concluding that the 1st respondent was competent to not only detained the goods under section 67 of the Tamil Nadu Value Added Tax Act, 2006 but also was competent to issue notice/order under section 72 of the aforesaid Act. There is no illegality - Petition dismissed.
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