TMI Blog2020 (5) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... point time - The petitioner had not affected any sale of the goods when the goods was detained by the 1st respondent at the Paranoor Check Post near Chengalpet. It is at a later stage, a sale would have taken place by the petitioner to its customer. The detention of the goods on the assumption that the petitioner had already effected sale and that no tax was paid when the goods were in transit was is purely based on the assumption, presumption and conjecture. As and when the petitioner effects sale, the petitioner would be liable to pay tax. There was an error in assumption of jurisdiction by the 1st respondent Commercial Tax Officer namely the Check Post officer on the ground that the goods had not suffered tax as the manufacturer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Squad, Chengalpet, Enforcement South Chennai and for consequential direction for a refund of ? 2, 74, 048/-paid by the petitioner as the compounding amount/fee for release of the goods detained vide Goods Detention Notice No 41/2013-14 in Form No. 41 dated 2.9.2013. 2. The petitioner had purchased a wind energy gearbox from M/s.Siemens Limited from their factory at Sriperumbadur Taluk, Tamil Nadu and had directly consigned to a site office from where the wind energy gearbox was to be installed for a customer of theirs along with the goods equipments. While the consignment was in transit it was intercepted and detained at the Paranoor Check Post, near Chengalpet District on the ground that on verification of the document produced at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lingan versus Joint Commercial Tax Officer (1967) 19 STC 349; iv. Supreme Industries Ltd Versus The Deputy commercial tax Officer And Others 7.Heard learned counsel for the petitioner and the respondent. Though the present writ petition is of the year 2013, the respondents have not filed any counter. 8.However, the learned counsel for the respondent on instructions have submitted that all rules and regulations, notifications clarifications orders made or issued under any of the provisions of the TNGST Act, 1959 will continue to be in force insofar as long as they are not inconsistent with the provisions of the Tamil Nadu Value Added Tax Act, 2006. 9.It is thereforesubmitted that under Rule 53 of the TNGST Rules, 1959, the Assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore of the view that detention of the goods on the assumption that the petitioner had already effected sale and that no tax was paid when the goods were in transit was is purely based on the assumption, presumption and conjecture. As and when the petitioner effects sale, the petitioner would be liable to pay tax. 16.In the era where there was scope for availing of input tax credit on the incidence of tax, it can hardly be assumed that the petitioner would not be paying tax as and when sale takes place. 17.The manufacturer s invoice filed along with the typeset indicates that the supplier-manufacturer had charged a sum of ? 1,3,024.05.This amount is available as input tax credit for being set off as input tax credit. Further, when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business under Rule 5 (1) (a) of the Tamil Nadu Value Added Rules, 2007 read with Section 38 of the Tamil Nadu Value Added Tax Act,2006. 21.Failure to obtain separate registration for the site office attracts penal provision Section71(1)(b). As per the aforesaid provision any person who is obliged to register himself as a dealer under the Act and does not get himself registered shall on conviction by a Magistrate, be liable to fine which may extend to ₹ 500 /- as the petitioner could have been proceeded only for the aforesaid violation. 22.Therefore, while upholding the invocation of Section 72(1) of the Tamil Nadu Value Added Tax Act, 2006, I am of the view that the composition fee ought to have been restricted to an amount no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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