2004 (9) TMI 616 - AT - VAT and Sales Tax

Summary

Issues:
1. Quashing of detention orders passed by the respondent.
2. Verification of genuineness of transactions with reference to relevant documents.
3. Issuance of final notices of demand of tax and compounding fee.
4. Statutory remedy available to petitioners by filing revision petitions.
5. Dismissal of original petitions with liberty to file revision petitions.

Analysis:

1. The original petitions were filed to quash the detention orders passed by the respondent in various instances. The Tribunal noted that the respondent had detained the goods to verify the genuineness of the transactions with reference to relevant documents regarding high-sea sales. In a previous case, the Special Tribunal had held that the Revenue is entitled to a fair opportunity to verify the transactions, which cannot be denied. Therefore, the Tribunal dismissed the original petitions seeking to quash the detention orders.

2. The learned Senior Standing Counsel informed the Tribunal that final notices of demand of tax and compounding fee had been issued after scrutiny of records available in the goods detention cases. The petitioners were advised to avail the statutory remedy by filing revision petitions before the Deputy Commissioner under section 33 of the Tamil Nadu General Sales Tax Act. Consequently, the Tribunal decided that there was no basis to quash the impugned orders in the goods detention notices and dismissed all the original petitions with liberty granted to the petitioners to file revision petitions as per the statutory provision.

3. The Tribunal further clarified that the petitioners could exercise their right to file revision petitions under section 33 of the Tamil Nadu General Sales Tax Act, 1959 against the goods detention notices that were the subject of the original petitions. Additionally, the stay petitions related to the matter were also dismissed by the Tribunal. The final order emphasized that the decision should be punctually observed and executed by all concerned parties.

In conclusion, the Tribunal's judgment addressed the issues of quashing detention orders, verification of transactions, issuance of final notices, statutory remedies available to petitioners, and the dismissal of original petitions while allowing the filing of revision petitions. The decision provided clarity on the legal course of action for the parties involved in the tax dispute.