2017 (2) TMI 349 - HC - VAT and Sales Tax

Compounding of offences - detention of goods only on the ground that online Form JJ and the transporter s Form MM were not submitted - Held that - it is quite clear that the respondent has mis-directed himself in law. A plain reading of Section 69 of the Tamil Nadu Value Added Tax Act, 2006 and Rule 15 would show that a sale bill ought to have sufficed - subject goods released - petition allowed.

Summary

Issues involved:
Challenge to tax and compounding fee imposed under Tamil Nadu Value Added Tax Act, 2006 for non-submission of online forms 'JJ' and 'MM' in a case of stock transfer without sale invoice.

Analysis:
1. The writ petition challenged an order requiring the petitioner to pay tax and compounding fee under the Tamil Nadu Value Added Tax Act, 2006 for not submitting online forms 'JJ' and 'MM' in a case of stock transfer. The petitioner contended that the impugned order was erroneous as it was a stock transfer, not a sale, and therefore, no tax or compounding fee should be levied.

2. The petitioner argued that the provisions of Section 69 of the Act, read with Rule 15, only required a sale invoice for such transactions. The petitioner had been regularly filing returns and paying tax, and the impugned order was based on the non-submission of online forms, which was not legally necessary.

3. The court noted that the respondent had misdirected himself in law by overlooking the fact that it was a stock transfer and not a sale. Referring to a previous judgment, the court emphasized that the detention of goods solely for not submitting online forms 'JJ' and 'MM' was not justified if other valid documents like invoices and lorry receipts were produced.

4. Drawing from a similar case, the court highlighted that the mere absence of online forms should not be the sole reason for detaining goods. The court allowed the writ petition, set aside the impugned order, and directed the release of goods and the lorry. The judgment emphasized the importance of verifying valid documents like invoices and lorry receipts rather than solely relying on online forms.

5. In conclusion, the court disposed of the writ petition, ordering the release of goods and the lorry, without any costs. The judgment clarified the legal requirements for transactions like stock transfers under the Tamil Nadu Value Added Tax Act, 2006, emphasizing the need for proper documentation beyond just online forms.