TMI Blog2022 (3) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of ₹ 2,00,000/-, the facts on record indicate that a subsequent notice was issued on 04.05.2009, which made it amply clear that the third respondent was in arrears of ₹ 79,13,281/- to the Commercial Taxes Department towards tax. Despite the same, the petitioner continued to make payment of ₹ 76,57,863/- for the period between 28.05.2009 and 30.07.2009 to the third respondent and further sum of ₹ 60,27,290/- for the period between 28.04.2009 and 22.05.2009 and thereby, denied the legitimate revenue to the Government. The Commercial Taxes Department was not required to issue a fresh notice in Form B-6 as long as there was a further intimation of arrears of tax due from the third respondent to the Commercial Taxes D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tamil Nadu Value Added Tax Act, 2006 [hereinafter referred to as ''the TNVAT Act''] and the Tamil Nadu General Sales Tax Act, 1959 [hereinafter referred to as ''the TNGST Act]. In the course of its business, the petitioner had purchased cotton from the third respondent. 3.It appears that originally the third respondent had filed return below the taxable limit. The assessment was finalized for the respective Assessment Years 2004-2005 and 2005-2006. At that stage, the first respondent had issued a notice dated 15.04.2009 and asked the petitioner to remit a sum of ₹ 2,00,000/- together with Form B-6. It appears that the assessment of the third respondent had been revised on 13.02.2009. However, the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of the defaulting dealer should pay the amount to the concerned assessing circle if he received notice relating to amounts of arrears to be paid by the dealer. But you have not acted according to Section 26 of TNGST Act 1959 and it is construed that, you have contravened the provision of Sections 26(1)(ii), (4), (5) of TNGST Act, 1959. Hence, you are requested to pay the amount of arrears due by the defaulter dealer at this end, according to provision of Section 26 of the TNGST Act, 1959.'' 4.The impugned communication and the subsequent reminder dated 12.03.2012, is challenged primarily on the ground that the petitioner was issued with Form B-6 dated 04.05.2009 along with communication dated 15.04.2009, whereby the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, the counter affidavit filed by the respondents 1 and 2, the documents filed in support of the present Writ Petition and the provisions of the TNGST Act and the TNGST Rules. 7.Section 26 of the TNGST Act provides a mode to recover arrears of tax from a defaulting dealer. Under the said provision, the assessing authority can directly call upon the creditor of a defaulting assessee to make direct payment for discharge of the tax liability of the defaulting dealer. Under subclause (3), payment by such creditor in compliance with a notice under the above said Section shall be deemed to have made under the authority of the dealer and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sufficient so as to attract liability under Section 26 (4) of the TNGST Act, 1959, which reads as under:- '' 26.Further mode of recovery.- (4) Any person making any payment to the dealer after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the payment made or to the extent of the liability of the dealer for the amount due under this Act, whichever is less.'' 10.A reading of Section 26 of the TNGST Act makes it clear that the assessing authority may at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice. In this case, though in the original notice, the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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