Madras High Court
M/S.Fonty Supply Chain Solutions ... vs The Deputy Commercial Tax Officer on 25 July, 2014
Author: M.Sathyanarayanan
Bench: M.Sathyanarayanan
THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25.07.2014 CORAM : THE HONOURABLE MR.JUSTICE M.SATHYANARAYANAN W.P.Nos.20007 and 20008 of 2014 and M.P.Nos.1,1,2 and 2 of 2014 M/s.Fonty Supply Chain Solutions Private Ltd., Represented by its Authorised Signatory, Mr.Govind Padiath, 5C-5D, Parika Phase II, Chuna Bhatti, Bhopal, Madhya Pradesh - 462 016. ...Petitioner in both WPs Vs The Deputy Commercial Tax Officer, Check Post Officer, Hosur (Out), Checkpost Hosur,Tamil Nadu. ...Respondent in both WPs W.P.No.20007 of 2014 filed under Article 226 of the Constitution of India, praying for a Writ of Certiorarified mandamus, call for the records pertaining to the impugned goods Detention Notice dated 15.07.2014 followed by the consequential compounding order issued in the month of July 2014 in GDR No.6010/2014-15 passed by the respondent and quash the same and to further direct the respondent to release the goods detained by him. W.P.No.20008 of 2014 filed under Article 226 of the Constitution of India, praying for a Writ of Certiorarified mandamus, call for the records pertaining to the impugned goods Detention Notice No.6011/2014-15 dated 15.07.2014 followed by the consequential compounding order issued in the month of July 2014 in GDR No.6011/2014-15 passed by the respondent and quash the same and to further direct the respondent to release the goods detained by him. For Petitioner : Mr.Hari Radhakrishnan For Respondent : Mr.Cibi Vishnu Additional Government Pleader (T) O R D E R
By consent, the writ petition is taken up for final disposal.
2. The petitioner claims that its company is engaged in the business of providing material handling services and it is also a service tax assessee. In the course of its business, the company had purchased two crown reach trucks equipment from M/s.Godrej and Boyce Manufacturing Company Limited at Gujarat on 28.12.2011 under cover of two invoices, for which Excise duty and Central Sales Tax have also been paid and after payment, the above said two equipments were delivered to them at Chennai on 02.01.2012. According to the petitioner, the above mentioned crown reach trucks equipment were delivered to the petitioner company at a time when the petitioner company had a VAT registration number issued by the Government of Madhya Pradesh on 30.08.2011 and the said VAT registration was subsequently surrendered and cancelled on 04.05.2012 as the petitioner was not engaged in trading of any goods.
3. The petitioner further claims that after delivery, during the course of usage of the above mentioned two crown reach trucks equipment, they faced several problems in the functioning of the machines and after several round of talks with the manufacturers, a decision has been taken to send back the equipments to M/s.Godrej and Boyce Manufacturing Company Limited as rejects and accordingly, it was transported back to the manufacturer at Gujarat. While the goods were passing through Hosur Check Post -OUT, it was detained on the ground that the vehicle carrying the goods did not carry the documents required under Section 67 of the Tamil Nadu VAT Act, 2006 and two Goods Detention Notices dated 15.07.2014 were issued. The petitioner, after receipt of the Detention Notices submitted a detailed representation on 16.07.2014 and not convinced with the same, the respondent had passed the two impugned orders, calling upon the petitioner to compound the alleged offence in terms of Section 72 of the Tamil Nadu VAT Act, 2006. Challenging the same, the petitioners have filed the present writ petitions.
4. The learned counsel for the petitioner on instructions would submit that the petitioner may be permitted to pay the tax amounting to Rs.2,29,387/- and Rs.2,28,686/- respectively raised in the two impugned notices and further prayed for liberty to challenge the levy of penalty by filing revision before the jurisdictional Joint Commissioner.
5. On the said submissions, this Court heard the submissions of Mr.Cibi Vishnu, learned Additional Government Pleader (Tax), appearing for the respondent.
6. In the result, the writ petitions are disposed of and the petitioner is at liberty to pay the tax of Rs.2,29,387/- and Rs.2,28,686/- respectively and on such payment, the goods detained shall be released forthwith. The petitioner is at liberty to challenge the penalty proceedings by filing revision before the jurisdictional Joint Commissioner. No costs. Consequently, connected miscellaneous petitions are closed.
25.07.2014 svki Note : Issue order copy today (25.07.2014) To The Deputy Commercial Tax Officer, Check Post Officer, Hosur (Out), Checkpost Hosur, Tamil Nadu.
M.SATHYANARAYANAN,J.
svki W.P.Nos.20007 and 20008 of 2014 25.07.2014