2007 (3) TMI 679 - HC - VAT and Sales Tax

Summary

Issues: Detention of goods under goods detention order, rejection of revision petition for non-production of compounding order, fairness in disposal of cases

The judgment of the Madras High Court involved a case where a petitioner, a registered dealer and a hundred per cent export oriented unit, had goods detained under a goods detention order issued by the Assistant Commissioner, Enforcement. The petitioner approached the Principal Commissioner and Commissioner of Commercial Taxes to release the goods, who directed the third respondent to release them upon furnishing a bank guarantee. The petitioner complied and got the goods released. However, the Deputy Commissioner dismissed the revision petition for not producing the compounding order, which was later obtained and produced to the Deputy Commissioner. The Deputy Commissioner refused to entertain the revision, leading to further dismissal by the Joint Commissioner. The petitioner challenged this sequence of events in a writ petition, arguing that the certified copy of the compounding order was eventually submitted and should have been considered by the authorities. The court noted that the Deputy Commissioner should have re-considered the issue afresh, as every order passed by a quasi-judicial officer can be reviewed if necessary, citing a Supreme Court judgment in support of this principle.

The High Court, after hearing arguments from both parties, found that the petitioner had indeed represented the revision along with the certified copy of the compounding order, which should have been taken into consideration by the authorities. The court held that the Deputy Commissioner should re-hear the matter, as his reasoning for not doing so previously was not legally sustainable. The court emphasized that every order passed by a quasi-judicial officer can be reviewed if needed, as per the judgment of the Supreme Court in United India Insurance Co. Ltd. v. Rajendra Singh. Therefore, the Deputy Commissioner was directed to re-consider the issue if the certified copy of the compounding order was available with the file. The writ petition was disposed of with this direction, and no costs were awarded.