TMI Blog2019 (2) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT] - The Hon'ble Kerala High Court held that in such cases at best the inspecting authority can alert the assessing authority to initiate the proceedings for assessment of any alleged sale, at which the petitioner will have all his opportunities to put forward his pleas on law and on fact - the squad officer can intercept the goods, detain them for the purpose of preparing the relevant papers for effective transmission to the jurisdictional assessing officer. The squad officer can intercept the goods, detain them for the purpose of preparing the relevant papers for effective transmission to the jurisdictional assessing officer. It is not open to the squad officer to detain the goods beyond a reasonable period. The process can a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied or roasted grams) falling under Chapter 2106 of HSN. 2. In this view of the matter, he issued a detention notice and levied tax with equal penalty. The petitioner paid the said amount as demanded by the fourth respondent under protest and he also obtained release of the goods as well as the vehicle. The order is under challenge in this writ petition principally on the ground that when a bonafide dispute as to classification had arisen, it is only the jurisdictional assessing officer, namely, the third respondent who could have ruled on the classification and that it was not open to the Squad Officer to have done so. 3. Heard the learned counsel on either side. The contesting respondent is only the fourth respondent. The fourth r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or seizure and after detention or seizure, shall be released, - (a) on payment of the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the inspecting squad officer is entitled to rule on the appropriate classification. 7.A Similar issue came up for consideration before the Hon'ble Kerala High Court in the decision reported in 2018 (11) TMI 1503 (N.V.K. Mohammed Sulthan Rawther and Sons and Willson Vs. Union of India). The Hon'ble Kerala High Court held that in such cases at best the inspecting authority can alert the assessing authority to initiate the proceedings for assessment of any alleged sale, at which the petitioner will have all his opportunities to put forward his pleas on law and on fact. The process of detention of the goods cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and, more part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Commercial Taxes, Chennai to issue appropriate directives in this regard. I find force in the said request. This Court therefore suo motu impleads the Commissioner of Commercial Taxes, Chennai as the fifth respondent in this writ petition and directs Shri.Aayiram K.Selvakumar, the learned Additional Government Pleader to take notice for him also. 11. The Commissioner of Commercial Taxes, Chennai is directed to issue a circular to all the inspecting squad officers in Tamil Nadu not to detain goods or vehicles where there is a bonafide dispute as regards the exigibility of tax or rate of tax. The circular shall embody the essence of the decision reported in 2018 (11) TMI 1503 (N.V.K. Mohammed Sulthan Rawther and So ..... X X X X Extracts X X X X X X X X Extracts X X X X
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