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TMI Blog2013 (5) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... nd then pass an order demanding whatever be the tax due therefrom. Even after such a demand, if the assessee had not paid the tax due thereon, by all means, the authorities are empowered to take any action. But, in this case, a notice pointing out the discrepancies had not been issued to the assessee; no opportunity was afforded to the assessee to put forth its defence and no notice of demand of tax due was served on the assessee. Instead of doing all these things, the 1st respondent has cast a Notice in Form U (Notice for recovery of money) which is per se illegal and unsustainable and in violation of the principles of natural justice. Thus the impugned notice is set aside & writ petition is allowed. - Writ Petition No: 6672 of 2013 - - - Dated:- 18-4-2013 - V. Dhanapalan,JJ. For the Petitioner : Mr. R. Hemalatha For the Respondent : Mr. Manoharan Sundaram ORDER Petitioner has challenged a notice issued in Form U (Notice for recovery of money) dated 27.02.2013 to the Branch Manager, Canara Bank, Vellore Main Branch, Vellore 632 004, the 3rd respondent attaching the Bank Account of the petitioner, quash the same and further direct the 1st respondent herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als have no jurisdiction to collect the tax even before the assessment order is passed by the 1st respondent and therefore, the action of the 2nd respondent is highly arbitrary and illegal. According to the petitioner, the action of the first respondent in attaching the bank account pending assessment for the respective years is totally unwarranted. It is also stated that the power to conduct an inspection has been postulated under Section 65 of the T.N.V.A.T. Act, 2006 which clearly defines the power to order production of accounts, power of entry, inspection, etc. and in the Section, it is nowhere stated that the inspecting officials have powers to forcibly collect the cheques from the petitioner at the time of inspection. 4. The respondents have filed their written instructions in Proceedings in TIN No: 33914283402/2012-13 dated 26.03.2013, which is as follows :- In continuation of this office reference 1st cited I am to inform that the Commercial Tax Officer (Enforcement), Group I, Ranipet, in his letter dated 24.08.2012 has informed that Surprise Inspection was conducted by the Enforcement Officers on 02.08.2012 at Tvl.Astek Electricals Controls, Ranipet. He has furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nspection at the petitioner's business premises, presumably in terms of Section 65 of the VAT Act, 2006 and verified various records maintained by the petitioner in the course of business. At the time of inspection, the officials have verified the day book, ledger, computerized sale invoices and purchase invoices relating to the assessment year 2012-2013 and alleged that the petitioner has claimed ITC wrongly due to E1 sales not proved; stock variation and stocks were kept in the un-registered godown. As many as 8 defects were framed at the time of inspection and a cheque for ₹ 3,75,699/- was forcibly collected from the petitioner towards tax due on the alleged defects. The 2nd respondent Enforcement Wing officials have compounded the offence and collected a sum of ₹ 2,000/- on the date of inspection. The 2nd respondent has no jurisdiction to direct any payment of taxes without even an order of assessment or demand thereof by the 1st respondent, who is the jurisdictional assessing authority. It is the petitioner's case that the inspecting officials have forcibly collected the taxes from the petitioner and appropriated the same towards taxes without even finaliza ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inquiry or proceeding under this Act. 10. Section 45 of the Act contemplates the mode of recovery of tax, which is as follows : 45, Further mode of recovery :- (1) The assessing authority may, at any time or from time to time, by notice in writing a copy of which shall be forwarded to the dealer at his last address known to the assessing authority require - (a) any person from whom money is due or may become due to the dealer, or to any person who has become liable to pay any amount due under this Act ; or (b) any person who holds or may subsequently hold money for, or on account of the dealer or other person who has become liable to pay any amount due under this Act, (2) ... .. ... (3) ... .. ... (4) ... .. ... (5) ... .. ... (6) Any amount which a person required to pay to the assessing authority or for which he is personally liable to the assessing authority under this Section shall, if it remains unpaid, be a charge on the properties of the said person and may be recovered as if it were an arrear of land revenue. Explanation :- For the purposes of this Section,t he amount due to a dealer or money held for or on account of a dealer by any person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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