TMI Blog2000 (8) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... .. Factual position which is almost undisputed presents some novel features. Petitioner is a dealer registered under the Act. Its business premises were surveyed by the officials of Enforcement Branch on May 14, 1999. Investigating officers were of the prima facie view that sales have been shown to alleged registered dealers who were non-existent. Sales in respect of one M/s. Pratham International of Ward No. 73 were subjected to further scrutiny and it was noticed that the registration certificate of the said concern had been cancelled earlier. But in the return filed for the quarter ending June 30, 1999, claim for sales to the registered dealers as may by the petitioner included purported sales amounting to Rs. 5,58,42,267 made to the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer made a request to the Deputy Commissioner of Police to keep the FIR in hold until further advice. At this stage the petitioner came before this Court. By order dated January 19, 2000 it was directed in C.M. No. 14280 of 1999 that the respondents will not encash any further cheques out of the cheques which were issued by the petitioner on November 24, 1999 and which were still lying unencashed. Nevertheless some cheques have been encashed. Learned counsel for the petitioner submitted that the entire action is mala fide, vitiated and in any event not sanctioned by any provisions of law. Learned counsel for the Revenue on the other hand submitted that looking at the conduct of the petitioner, the authorities rather took a liberal view in k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson purchasing goods commits an offence under clause (c) or, clause (d) of section 50, the authority which granted him, or, as the case may be, is competent to grant him a certificate of registration under this Act, may after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty, a sum not exceeding two and a half times the tax which could have been levied under this Act in respect of the sale to him of the goods, if the offence had not been committed." A bare reading of the provision makes it clear that action under section 56 can only be taken in the course of any proceedings under the Act. Undisputedly at the point of time when action under section 56 of the Act was initiated there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of certain documents and shall pass necessary orders therein. We make it clear that we have not expressed any opinion in that regard. 5.. So far as the amount collected purportedly on the basis of voluntary offer made by the assessee is concerned, there is great controversy as to whether the action was voluntary or under threat from the respondents. Undisputedly a portion of the amount in question has been deposited, and notwithstanding an order of stay passed by this Court amounts have been collected by encashing cheques. Learned counsel for the Revenue submitted that being aware that after cancellation of the registration of M/s. Pratham International it has to face penal consequences for making false claim of deduction, the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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