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Issues:
- Appeal filed under s. 36(1) of Tamil Nadu General Sales Tax Act disputing tax on a turnover of Rs. 11,250. - Detention of goods by Check Post Officer for lack of proper documents under s. 45(2)(d) of the Act. - Dispute regarding the necessity of detaining goods to prevent tax evasion. - Arguments on the legality of tax collection and detention of goods. - Lack of formal order after enquiry under s. 42(3)(ii) and absence of justification for tax collection. - Appeal for refund of tax paid. Analysis: 1. The appeal was filed challenging the tax on a turnover of Rs. 11,250 under the Tamil Nadu General Sales Tax Act. The goods, 45 tyres worth Rs. 11,250, were detained by the Check Post Officer due to the absence of proper documents as required by the Act. The carrier firm contended that the goods were mistakenly loaded in a lorry bound for Madras instead of Hyderabad, leading to the lack of accompanying documents. The carrier presented explanations supported by a certificate, but the authorities proceeded with tax collection without proper enquiry as mandated by the Act. 2. The Check Post Officer had the authority to detain goods on suspicion of tax evasion under the Act. However, the carrier should have been given an opportunity to explain before final detention. The authorities failed to conduct a proper enquiry and passed the detention order hastily without considering the carrier's explanations and supporting documents. The tax collection without a formal order after an enquiry was deemed illegal, and the carrier was entitled to a refund of the tax paid. 3. The carrier's representative argued that the absence of goods in the lorry's load list was consistent with the mistake in loading. The carrier had provided evidence of the correct consignment details and explained the situation, indicating no intention to evade tax. Despite the initial suspicion, the carrier's explanations and subsequent actions to return the goods to Hyderabad demonstrated no liability for tax within the state. 4. The Appellate Tribunal found that the detention order was invalid and allowed the appeal, granting the carrier a refund of the tax paid. The Tribunal emphasized the necessity of proper enquiry and justification before detaining goods or collecting tax, highlighting the importance of following legal procedures to prevent unjust collection of taxes.
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