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M/s Gullu's Versus Commissioner, Trade & Taxes, & Others

Return of cheque of 12 lacs collected at the time of inspection - Difference in VAT paid and to be paid - Held that:- the Court is not satisfied with the wording of the circular F. No. 7(3)/L&J/Circular/2016/270 dated 11th March 2016. It still leaves it open to VAT Authorities to collect tax either through the e-payment mode or the physical offline mode at the time of conducting a survey or an inspection of the business premises of a dealer. It is noted that despite the order of this court in th .....

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CTT to comply by himself and would not be delegate this task to any other officer including any Special Commissioner who may be otherwise authorised to do so. - Petition disposed of - W. P. (C) 1566/2016 & CM No. 6780/2016 (for stay) - Dated:- 14-3-2016 - S. Muralidhar And Vibhu Bakhru, JJ. For the Petitioner : Mr. Rajesh Mahna with Mr. Ruchir Bhatia and Mr. Ramanand Roy, Advocates For the Respondents : Mr. Satyakam, Additional Standing Counsel for GNCTD ORDER Dr. S. Muralidhar, J. 1. The Petiti .....

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inspection, the AVATO expressed the view that the items sold by the Petitioner, in particular meat , was chargeable to VAT @ 12.5% and not 5% and further insisted that unless the Petitioner gave a cheque of ₹ 12 lakhs in favour of the Department of Trade and Taxes (DT&T) at the spot, the business premises of the Petitioner would be sealed. The Petitioner averred that having no other option, the sole proprietor of the Petitioner, Mrs. Sunita Arora, was compelled to hand over a cheque o .....

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immediately deposit the said amount, the premises would be sealed. Under such threat the Petitioner states that she was forced to deposit a sum of ₹ 5 lakhs on the spot through the online system, where the challan was printed out from the website of the DT&T. 3. It is in the above background that the writ petition prayed for a direction to the Respondents to return the cheque of ₹ 12 lakhs collected from the Petitioner and to restrain them from taking any further coercive action .....

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f Mr. Satyakam, the matter was then adjourned to the following date, i.e., 23rd February 2016. The concerned AVATO was also required to remain present on the next date. 5. On 24th February 2016 the following order was passed: 1. Mr Satyakam, learned Standing counsel for the Respondent informs the Court that the cheque which was collected at the premises of on 12th February, 2016 was returned to the Petitioner yesterday. He further states that in light of the observations of the Court at the hear .....

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on the pretext of collecting tax dues from the concerned dealer. 2. Considering the number of instances that have come before this Court in the recent past where dealers have been asked to issue cheques for alleged outstanding tax demands and are stated to have 'voluntarily' handed over such cheques, the Court considers it appropriate to keep the present petition pending till such time the instructions, as assured to this Court, are issued by the Commissioner of Trade and Taxes. 3. As fa .....

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r dasti under the signature of the Court Master. 6. Today, Mr. Satyakam produced before the Court copy of a Circular F. No. 7(3)/L&J/Circular/2016/270 dated 11th March 2016 issued by the Special Commissioner (L & J) which reads as under: Sub: Guide lines for officials/officers of Trade & Taxes Department during conduct of survey/inspection. Recently the Hon ble High Court of Delhi while delivering the judgment in the matter of M/s. Gullu s in Writ Petition No. 1566/2016 and M/s. Capr .....

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of DVAT Act 2004 and Rule 31 of DVAT Rules 2005. All dues are to be paid in appropriate Government Treasury as defined under Rule 4(b) of the DVAT Rules. Presently, a total of 27 banks stand notified for the purpose of collection of Tax. Facility of e-payment mode exists in all the authorised banks. Besides, two banks, viz., State Bank of India and HDFC Bank have also been authorised to accept payment through OTC (Over the Counter). In this mode also, challan is to be got printed from the depart .....

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tions shall be viewed seriously and will invite initiation of disciplinary proceedings. This issues with the approval of Commissioner (VAT). 7. Mr. Satyakam sought to explain to the Court that the above circular is in compliance with the order dated 24th February 2016 and makes it clear that the action of the Respondents in collecting a cheque from the Petitioner at the time of the survey proceeding on 12th February 2016 was not in conformity with the mode of collection of VAT as envisaged under .....

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nd judgment 2nd March 2016 in W.P.(C) No. 8913/2014 (Capri Bathaid Private Limited v. Commissioner of Trade & Taxes) (both of which have been noted in the above Circular), clear and categorical instructions have not been issued that no dealer would be coerced by the officers of the DT&T to make payment of any amount either towards alleged tax dues or otherwise either by cheque or cash at the time of a survey or inspection or any other proceeding including proceedings under Section 60 of .....

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