2009 (9) TMI 912 - HC - VAT and Sales Tax

Summary

Issues involved: Mandamus for return of cheques issued without proper assessment by the tax authority.

Summary:
The petitioner sought a mandamus to direct the tax authority to return cheques issued without proper assessment. The enforcement officials alleged the petitioner's turnover had exceeded a certain amount and collected cheques for tax payment. The petitioner contended that the tax authority had no jurisdiction to demand cheques without a proper assessment. The court noted a previous judgment directing the return of cheques issued in similar circumstances. The Government Advocate argued that the cheques were dishonored due to stop payment instructions. The court, considering the lack of assessment orders and voluntary issuance of cheques, ordered the tax authority to return the cheques within two weeks. The judgment directed the return of the cheques to the petitioner, following the precedent set in a similar case.