The High Court held that a Deputy Commercial Tax Officer (Check Post Authority) lacks the competence to assess tax and levy penalties. Consequently, an order confirming compounding fee passed by this authority was quashed, and the Writ Petition for Certiorari was allowed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.01.2016 CORAM
The Hon'ble Mr.Justice R.Mahadevan
Writ Petition No.25155 of 2015
and M.P.No.1 of 2015
M/s.Sree Shanthosh Steels Pvt. Ltd.,
rep. by its Director, P.K.P.Narayanamurthy No.132 (New No.71) Rasappa Chetty Street, Chennai - 600 003. ... Petitioner
The Deputy Commercial Tax Officer, Pattanur Check Post, Morattandi Villupuram District. Pin - 605 006. ... Respondent
Prayer:-
Writ petition has been filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari to call for records on the file of the respondent in O.R.No.95/2012-2013, G.D.No.56/2012-13, dated 19.07.2015 and to quash the same as illegal
For Petitioner : Mr.T.Pramodkumar Chopda
For Respondent : Mr.V.Haribabu
Additional Government Pleader
The challenge in this Writ Petition is to the proceedings of the Deputy Commercial Tax Officer/respondent, dated 19.07.2015.
i) The petitioner is a registered dealer, under the Tamil Nadu Value Added Tax Act and Central Sales Tax Act. The petitioner, in their regular course of business, received purchase order from M/s. KMV Project Ltd., for supply of iron and steel bars, to be delivered at their site address at M/s.KMV Projects Ltd., Rites, Pondicherry University Campus, Kalapet,
ECR Road, Pondicherry. The petitioner effected delivery through a public carrier, accompanied with proper documents. But the same were detained by the respondent on the ground of evasion of tax, and accordingly goods detention notice was issued. The petitioner, upon receipt of the goods detention notice, filed a reply, dated 14.07.2012, along with copies of required transport documents, seeking release of the goods. But the respondent issued a compounding notice, dated 16.07.2012, to the petitioner. Challenging the same, the petitioner approached this Court, by filing W.P.No.18296 of 2012, and sought for direction upon the respondent to release the goods forthwith. This Court, by order, dated 17.07./2012, disposed of the said Writ Petition, by directing the respondent to release the goods, subject to the payment of 5% of the tax, i.e. 23,24,000/- by the petitioner. Thereafter, the respondent issued the adjudication notice, dated 26.01.2013, under Sections 70(1) (c), 71 (3) (d), 71 (3)(e) and 71 (5) (a) of TNVAT Act, and called upon the petitioner to show cause as to why the difference of compounding fee should not be levied on him, for which, the petitioner filed reply, dated 14.02.2013, denying the offences. Now, the respondent, by the impugned order, confirmed the proposal made in the adjudication notice. Impugning the same, the petitioner is onceagain before this Court, by the present Writ Petition.
pointed out by the learned counsel appearing for the petitioner, the authority, who is entitled to assess and levy penalty, is the Assessing Authority, and not the Check Post Authority. Therefore, the impugned order is liable to be quashed. Further, when all the documents are produced and the legality of the transaction is proved, there is no question of invoking the provision for composition of offences. Accordingly, the impugned order is set aside and the Writ Petition is allowed. No costs. Consequently, connected Miscellaneous Petition is closed.
sd/-
Assistant Registrar(Cs-V)
/TRUE COPY/
Sub-Assistant Registrar
sd
To
The Deputy Commercial Tax Officer,
Pattanur Check Post,
Morattandi Villupuram District.
Pin - 605 006.
+1 CC to MR.T.Pramodkumar Chopda Advocate. SR.NO. 1159
+1 CC to Special Govt.Pleader. SR.NO. 1360
Writ Petition No.25155 of 2015
CO-SK
JD 01/02/2016
2 issues framed by the court
Whether the Deputy Commercial Tax Officer (Check Post Authority) had jurisdiction to pass an adjudication order confirming compounding fee.
Whether the impugned order levying tax and penalty by the check post authority was liable to be quashed.
Colour shows how this judgement treated each authority
W.P.No.18587 of 2015, dated 26.06.2015Relied on¶18
2 provisions across 2 enactments
M/s. Sree Shanthosh Steels Pvt. Ltd.
The Deputy Commercial Tax Officer
R. Mahadevan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
