Writ Petition No. 32803 of 2012 · Madras High Court

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 7.12.2012CORAMTHE HONOURABLE MR. JUSTICE R.SUDHAKARWrit Petition No.32803 of 2012 M/s.Morf India Limited, No.3/3 Sarojinji Street, Mahalilngapuram, Nungambakkam, Chennai-600 034.... Petitioner vs. The Commercial Tax Officer, Roving Squad-III,Enforcement (South),Chennai-600 006. ... Respondent Writ Petition is filed under Article 226 of Constitution of India praying to issue a Writ of Certiorarified Mandamus, to call for the records of the respondent in G.D.No.7/12-13 and quash the Notice dated 31.10.2012, with a consequential direction to the respondent to release the goods as required under Section 67(4) of the TNVAT Act,2006, without imposing any condition of payment of Compounding fees. For Petitioner : Mr.Md.Ghafoorur Rahman For Respondent :Mr.A.R.Jayaprathap, Government Advocate (Tax) -----

O R D E RThis Writ Petition is filed praying to issue a Writ of Certiorarified Mandamus, to call for the records of the respondent inG.D.No.7/12-13 and quash the Notice dated 31.10.2012, with aconsequential direction to the respondent to release the goods as required under Section 67(4) of the TNVAT Act, 2006, without imposing any condition of payment of Compounding fees. https://hcservices.ecourts.gov.in/hcservices/

Mr.A.R.Jayaprathap, learned Government Advocate (Tax) takes notice for the respondent. By consent the writ petition is taken up for final disposal.

Petitioner seeks release of goods detained under goods detention notice dated 17.9.2012 and the further notice for composition. The reason for detention is that the consignee TINnumber has not been furnished. Therefore, there is a violation of the provision of Tamil Nadu Value Added Tax Act, 2006. The goods detained at the lorry shed of the Tvl. Associated Road Carriers Ltd. Petitioner/consignor now seeks release of goods saying that tax has already been paid by referring to certain documents.

The court is, however, not inclined to go into the individual documents to verify as to whether tax has actually been paid or not. On the contrary, petitioner is entitled for release of the goods if the petitioner pays the tax of Rs.36,720/- under protestand seek release of the goods forthwith under Section 67(4) of TamilNadu Value Added Tax Act, 2006.

Insofar as composition of offence is concerned, section 72of the Tamil Nadu Value Added Tax Act 2006 provides the procedure for composition of the offence and Section 46 of the Tamil NaduGeneral Sales Tax Rules Act is analogous to the present Section 72of the Tamil Nadu Value Added Tax Act, 2006. The prescribed authority has been defined under Rule 53 of the Tamil Nadu GeneralSales Tax Rules which rule is made applicable to the 2006 Act interms of section 88(3)(i) of the Tamil Nadu Value Added Tax Act,2006. A detailed procedure has been prescribed for composition and an opportunity should be given before passing an order under Section72 of the TNVAT Act, 2006. The said section prescribes that an order should be passed on composition either way on merits and the petitioner is entitled to pursue the same on merits, if aggrieved.

In such view of the matter, the petitioner is given liberty to seek release of the goods on complying with Section 67(4) of the Tamil Nadu Value Added Tax Act, 2006 by payment of tax alone, (i.e.)Rs.36,720/-. Insofar as composition of the offence, as per notice issued, it has to be dealt with independently. The goods under detention shall be released forthwith on payment of tax as demanded in terms of Section 67 of Tamil Nadu Value Added Tax Act, 2006. https://hcservices.ecourts.gov.in/hcservices/