9911796707
TMI Blog2006 (5) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... urity amount Rs. 6,25,006 was deposited. The rate at which collection of tax on the commodity bajri was to be calculated as per clause 11 of the contract which provided rate at Rs. 6 per ton. In the alternative the composition fees at Rs. 60 per tractor, per truck Rs. 120 and Rs. 240 per turbo trollar. During the continuance of the aforesaid contract the petitioner was served with a show cause notice, annexure 17, dated April 22, 2003 informing the petitioner that a complaint has been received that the petitioner is collecting composition fee compulsorily, notwithstanding that the weighment slip of weigh-bridge was produced before it. It was informed in the notice that in respect of following trucks, a complaint has been lodged a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging the tax only as per the notification, and whosoever produces weigh slip, tax as per the rate fixed at Rs. 6 per ton is only collected. But where the weigh slip is not produced the composition fees is being paid by the respective person-in-charge of the vehicle carrying bajri. This followed the impugned order, annexure 19, dated May 13, 2003 holding the petitioner-contractor guilty of recovering Rs. 60 as composition fees from each vehicle by discarding weigh slip in breach of the contract, and, therefore, the contract was cancelled. The balance of the contract money was sought to be recovered and security was ordered to be forfeited. The order is founded on the report collected by the Deputy Commissioner who had deputed the Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed composite fees. Hence the order is founded on non-existent material. It was also urged by the counsel for the petitioner that rate of tax has been fixed by the State in exercise of powers conferred under the Act of 1994 vide two notifications. Vide first notification dated January 15, 2003 the rate of tax for bajri was fixed at Rs. 6 per ton. Vide another notification dated January 15, 2003 while granting exemption from payment of tax on bajri condition was imposed that in such event the composition fees shall be paid at the rate stated for tractor, truck and turbo troller as noticed above. It is on the basis of two notifications the rate of tax whether per ton or composite fee was directed to be recovered by the contractor from every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y composition fees. The suggestion made in the impugned order that the tractor owners were to submit their option before competent officer to avail benefit of exemption by paying composition fee, does not appear to be justified inasmuch as tax is to be collected on spot only from every vehicle passing through check-post. It is on the spot the person-in-charge has to make choice either to get weighment of vehicle and obtain weigh slip to pay tax accordingly, or it may choose to pay composition fee and pass on. Requirement of written option is not part of the procedure prescribed. It is also amply substantiated from record that alleged enquiry by the Assistant Commissioner was conducted without including contractor in the enquiry and every ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order cannot be sustained. Learned Additional Advocate-General appearing for the State has tried to urge from the material on record that there is some material adverse to the petitioner-contractor. Suffice it to say that if any material is available on record, the petitioner ought to be informed about it before using it against the contractor and given an opportunity to explain such adverse material. That is a minimum requirement of fair play and principles of natural justice, applications of which have not been excluded. In the aforesaid circumstances, the appeal is allowed and impugned order dated May 13, 2003 is set aside. Any order passed in consequence to the impugned order, also stands set aside and the Deputy Commissioner, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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