M/S.Prime Gold International Ltd v. The State Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 12.11.2021

CORAM

THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.NO.22275 OF 2021 AND W.M.P.NO.23492 OF 2021 (Through Video Conferencing) M/s.Prime Gold International Limited, Represented by its Manager Finance, Ulliveeranapally Village, Thally Main Road, Denkanikottai Taluk, Krishnagiri District.

... Petitioner .Vs.

1. The State Tax Officer, Inspection Cell-V, Salem, (Deputation to Salem Special Roving Squad), Commercial Taxes Building, Hosur - 635 109.

2. The Assistant Commissioner, State Taxes, Hosur South - 1, Hosur - 635 109.

... Respondents PRAYER:- Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorari, calling for the connected records of proceedings of the first respondent herein made in Notice issued to the driver of the Vehicle No.TN29AL 6229 in his notice for Confiscation of Goods in Mov-010 Sl.No.08/2021-2022Roving Squad Team dated 27.09.2021 and quash the same. For Petitioner : Mr.Manoharan Sundaram For Respondents : Ms.Amirta Dinakaran Government Advocate

ORDER

Ms.Amirta Dinakaran, learned Government Counsel takes notice on behalf of the respondents.

2. This Writ Petition is disposed at the time of admission considering the fact that the respondents have straight away proceeded to pass an order under Section 130 of the Tamil Nadu Goods and Service Tax Act, 2017 (hereinafter referred to as the TNGST Act).

3. The impugned order has been passed bypassing the statutory safeguards prescribed under Section 129 of the TNGST Act, 2017. As per Section 129(1) of the TNGST Act, where any persons transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or Rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure shall be released on payment of the applicable tax and penalty equal to one hundred percent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two percent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty.

4. The learned counsel for the petitioner submits that the petitioner has already sent a representation/objection on 23.09.2021 to the first respondent undertaking to pay the amount. Despite the same, the respondents have passed an order under Section 130 of the TNGST Act, 2017. Considering the fact that the order has been passed under Section 130 of the TNGST Act, the impugned order dated 27.09.2021 stands quashed and the same shall be treated as Show Cause Notice issued under Section 129 of the TNGST Act, 2017.

5. The petitioner is directed to comply with the requirements of Section 129 of the TNGST Act, 2017. If the petitioner pays the amount as is completed under Section 129 of the TNGST Act, the respondents shall release the vehicle. It is made clear that the respondents shall accept the amounts if the same is tendered by the petitioner.

6. This Writ Petition stands disposed of with the above observations. No costs. Consequently, connected Writ Miscellaneous Petition is closed.

Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar rgm/arb To 1.

The State Tax Officer, Inspection Cell-V, Salem, (Deputation to Salem Special Roving Squad), Commercial Taxes Building, Hosur - 635 109.

2.

The Assistant Commissioner, State Taxes, Hosur South - 1, Hosur - 635 109.

+1cc to Mr.Manoharan Sundaram, Advocate, S.R.No.58222 +1cc to the Special Government Pleader (Taxes), S.R.No.58492 W.P.NO.22275 OF 2021 AND W.M.P.NO.23492 OF 2021 EV(CO) PBS/23/11/2021