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Sumit Agencies Versus State of Punjab & Others

2015 (7) TMI 426 - PUNJAB & HARYANA HIGH COURT

Forced recovery of VAT - It is submitted that respondent had also taken the signatures of the petitioner on blank papers and thereafter, encashed one cheque bearing No.053461 on 21.02.2015, as per the bank's statement. Thereafter, notice had been served upon the petitioner on 09.03.2015 to which a reply had been filed that the two cheques were forcibly taken and one of the cheque, amounting to ₹ 3 lacs had already been encashed and the payment of the second cheque had been stopped by the p .....

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days later to the tune of ₹ 3 lacs, allegedly in discharge of the anticipated liability, as per the reply filed, cannot be appreciated, in any manner. The eagerness of the official-respondents to meet their targets at the end of the financial year, by following this method of recovery, cannot be approved.

It is apparent, prima facie that such a huge liability has been made out against the petitioner without giving him proper opportunity to put-forth his case merely on account of .....

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espondent No.3, by the State, for his arbitrary action.

The said proceedings shall be decided by an officer of competent jurisdiction, who was not associated with the inspection conducted on 16.02.2015 and who would be appointed by respondent No.2 - Decided in favor of assessee. - CWP No. 4709 of 2015 - Dated:- 8-7-2015 - S. J. Vazifdar, Acting Chief Justice And G. S. Sandhawalia,JJ. For the Petitioner : Mr. Aman Bansal, Advocate For the Respondent : Mr. Jagmohan Bansal, Addl. A. G., .....

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bility, the cheques could not be taken. 2. The pleaded case of the petitioner is that the petitioner-Firm is engaged in the business of supply of cigarette, biddi, pan masala etc. and duly registered under the Punjab Value Added Tax Act, 2005 (for short, the 'PVAT') and was not a defaulter. It has been alleged that respondent No.3, Navjeet Singh, the Excise & Taxation Officer, Mobile Wing, Ludhiana, who has been impleaded in his personal capacity, came to his premises on 16.02.2015 a .....

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ad been served upon the petitioner on 09.03.2015 to which a reply had been filed that the two cheques were forcibly taken and one of the cheque, amounting to ₹ 3 lacs had already been encashed and the payment of the second cheque had been stopped by the petitioner. Resultantly, the present writ petition has been filed for the necessary relief, mentioned above. 3. In the written statement, filed by the said respondent No.3 on behalf of respondents No.1 & 2, the defence taken was that th .....

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gs were in progress and many irregularities were found and true and correct account had not been maintained resulting in evasion of tax. Several discrepancies were pointed out and the plea taken was that the cheques were submitted voluntarily at the time of inspection. Thereafter, one of the cheque was encashed with full knowledge as the petitioner had desired to discharge his anticipated liability in parts. Notice had been issued to the petitioner for provisional assessment of the income under .....

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nd for the balance amount of ₹ 8,20,281/- has been raised. The original record has also been produced for perusal of this Court to see that in which manner the authorities have exercised their jurisdiction. A perusal of the same would go on to show that the authorities have acted in an arbitrary and illegal manner. 5. Respondent No.3, firstly, has filed his reply on behalf of respondents No.1 & 2 also and not replied against the allegations of mala fides levelled against him and accord .....

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tice of motion was issued by this Court on 17.03.2015. As per the zimni order dated 10.03.2015, recorded by respondent No.3, it has been noticed that one of the cheques has been encashed in favour of the Department. Thereafter, the said official had further conducted proceedings and he was informed on 08.04.2015 that the matter is pending in this Court and proceedings continued on account of the fact that there was no stay. 6. On 09.06.2015, permission was taken by respondent No.3, firstly, for .....

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voiding appearance. Accordingly, the judgment was reserved on 17.06.2015 and as noticed above, the provisional assessment was framed and accordingly, a demand of ₹ 11,20,281/- was raised by passing the impugned order on provisional assessment on 26.06.2015. 7. The said procedure smacks of arbitrariness and highhandedness of the authorities on the face of the record itself, which cannot be appreciated, in any manner. In the absence of any assessment, the action of respondent No.3 to take tw .....

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assessment framed thereafter, but in view of the above facts and circumstances, since it has been done during the pendency of the writ petition, we are of the opinion that the same is liable to be quashed since the same was done by an officer who was entrusted with the proceedings inspite of the fact that he was also part of the inspection team which had visited the premises of the petitioner on 16.02.2015. Therefore, it is apparent, prima facie that such a huge liability has been made out again .....

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