Tvl. Annur Cauvery Spintex v. The Commercial Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 29.09.2016

CORAM:

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.No.34350 of 2016 Tvl.Annur Cauvery Spintex (P) Ltd., rep. by its Director R.Subbian .. Petitioner vs.

1.The Commercial Tax Officer (Enforcement ), Group-IV Dr.Balasundaram Road Coimbatore - 18.

2.The Assistant Commissioner (CT) Avinashi Assessment Circle Avinashi, Tirupur District.

.. Respondents PRAYER : Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of mandamus, to direct the respondents to arrange to return back the cheque bearing Nos.890942 dated 28.07.2016 for Rs.5,00,000/-; 890943 dated 12.08.2016 for Rs.3,00,000/-; 890944 dated 27.08.2016 for Rs.3,20,015/- and 890945 dated 12.09.2016 for Rs.4,00,000/- totalling to Rs.15,20,015/-, issued on State Bank of India, Ganesapuram Branch, coiombatore, collected on the spot contrary to the principles laid down by this Court in the Judgment reported in (1992) 87 STC 513 (Hotel Blue Nile Vs. State of Tamil Nadu & Others).

For Petitioner : Mr.R.Senniappan For Respondents : Mr.K.Venkatesh Govt. Advocate (Taxes)

O R D E R

Heard Mr.R.Senniappan, learned counsel appearing for the petitioner and Mr.K.Venkatesh, learned Government Advocate (Taxes) appearing for the respondents. With the consent of the learned counsel appearing on either side, the Writ Petition itself is taken up for disposal.

2.The petitioner-Company Firm, which is a registered dealer on the file of the second respondent under the provisions of the Tamil Nadu Value Added Tax Act, 2006 [TNVAT Act] and under the provisions of the Central Sales Tax Act, 1956 [CST Act], has approached this Court for a direction to the respondents to arrange to return back the cheque bearing Nos.890942 dated 28.07.2016 for Rs.5,00,000/-; 890943 dated 12.08.2016 for Rs.3,00,000/-; 890944 dated 27.08.2016 for Rs.3,20,015/- and 890945 dated 12.09.2016 for Rs.4,00,000/- totalling to Rs.15,20,015/-, issued on State Bank of India, Ganesapuram Branch, Coimbatore, collected on the spot, without having any order of assessment and the same is contrary to the principles laid down by this Court in the Judgment reported in (1992) 87 STC 513 (Hotel Blue Nile Vs. State of Tamil Nadu & Others). 3.

Time and again, this Court has reiterated that the Enforcement Officials are not entitled to effect spot collection as if it is an advance tax nor they are empowered to collect tax from the dealer during the course of investigation. As early as in the year 1992, this Court, in the case of Hotel Blue Nile Vs. State of Tamil Nadu (Mad.), [(1992) 87 STC 513], held that the collection of cheques by the Enforcement Wing Officials, is without jurisdiction. This view has been consistently followed in several decisions of this Court. Thus, the action of the second respondent, in collecting the cheques from the petitioner is without jurisdiction.

4.In the light of the above legal position, there will be a direction to the first respondent to return the cheques, collected from the petitioner, within a period of three days from the date of receipt of a coy of this order. The Writ Petition is disposed of accordingly. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar rpa

To 1.The Commercial Tax Officer (Enforcement ), Group-IV Dr.Balasundaram Road Coimbatore - 18.

2.The Assistant Commissioner (CT) Avinashi Assessment Circle Avinashi, Tirupur District.

+1cc to Mr.R. Senniappan, Advocate, S.R.No.56283 +1cc to the Government Pleader, S.R.No.56131 VSN(CO) EU(03/10/2016) W.P.No.34350 of 2016