M/S Manjunatha Mines And Mineral Traders, v. The State Of Andhra Pradesh,

THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN And THE HON'BLE SRI JUSTICE M.SATYANARAYANA MURTHY WRIT PETITION No.849 of 2016 ORDER: (per Hon'ble Sri Justice Ramesh Ranganathan) Heard Sri P.Girish Kumar, learned counsel for the petitioner, and Sri Sk.Jeelani Basha, learned Special Standing Counsel for Commercial Tax, and, with their consent, this Writ Petition is being disposed of at the stage of admission.

The proceedings under challenge in this Writ Petition is the detention notice issued in Form-610 dated 03.01.2016 detaining the goods on the ground that, as per the waybill, the vehicle started from Kadapa on 03.01.2016 at 0.32.15 a.m; and, as the vehicle was detained at 5.30 a.m., the journey time and the waybill time did not match. Except for this objection, the notice of detention does not refer to any other violation on the part of the petitioner with regards the documents accompanying the vehicle and the goods.

Section 45 (7) (a) of the Andhra Pradesh Value Added Tax Act, 2005 reads as under:

"Where goods are carried without paying tax, if any, payable or goods are carried without being properly accounted for in the documents referred to in clause (b) of sub-Section (2), the said officer shall collect the tax payable on the goods so carried and in addition levy a penalty not exceeding two times the amount of tax payable on such goods after giving a reasonable opportunity to the person likely to be effected, against the proposed penalty". In view of the aforesaid provision where all the documents, required to be carried with the vehicle, are not so carried, the authorities at the check post are empowered to levy VAT on the invoice value of the goods, and twice the tax as penalty. Before imposing penalty, the person concerned is required to be given an opportunity of being heard. The petitioner is a registered dealer in the State of Andhra Pradesh. We consider it appropriate, therefore, to direct the respondents to release the goods and the vehicle forthwith on the petitioner furnishing proof of

payment of VAT on the invoice value of the goods. The tax so paid shall be subject to the assessment order to be passed by the authorities in accordance with law. It is made clear that this order shall not preclude the respondents, if they so chose, from initiating penalty proceedings in accordance with law.

The Writ Petition stands disposed of accordingly. Miscellaneous Petitions pending, if any, shall also stand disposed of. There shall be no order as to costs.

______________________________ RAMESH RANGANATHAN, J __________________________________ M.SATYANARAYANA MURTHY, J 07th January, 2016.

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