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TMI Blog2014 (7) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... der as to the tax liability. Held that:- it is not open to respondents 1 and 3 to arrive at a conclusion as to the petitioner's tax liability immediately after interception of the vehicles in question. The contention of respondents that the writ petitioner is a stranger to the transaction is untenable since the petitioner is the registered dealer and the burden is on the petitioner to prove that the transaction in question is not an inter-State sale and that the transaction is not liable to be taxed in terms of section 6A of the Central Sales Tax Act. Such liability can be determined only after complying the procedure prescribed under the Act and till such determination is made collection of tax and penalty is undisputedly without authority of law. Merely because respondent No. 4 paid the tax, it is not open to respondents Nos. 1 to 3 to contend that the petitioner is a stranger to the transaction, particularly in view of the admitted fact that respondent No. 4 is none other than the consignee. - The further contention advanced on behalf of the respondents that the tax and penalty was paid voluntarily by respondent No. 4 does not appear to be credible and is not at all convincin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndupur were not specified either by respondent No. 1 or by respondent No. 3. Respondent No. 1-Deputy Commercial Tax Officer, in his counteraffidavits denied all the averments in the writ petitions and contended that the petitioner is a total stranger and the tax and penalty was neither demanded by respondent No. 1 nor paid by the petitioner. It is sought to be explained that respondent No. 4 approached the first respondent and voluntarily paid the tax and penalty on December 29, 2011 as the consignments were not covered by proper documents. It was also stated that the vehicles in question were passing through Hindupur only to avoid checkpost as no proper documents were being carried, and therefore the Vigilance Officials calculated the tax and penalty and sent a report dated December 29, 2011 to respondent No. 1 for necessary action. On December 29, 2011 itself the representatives of respondent No. 4 attended the office of respondent No. 1 and paid the tax and penalty without any protest. The said tax and penalty were collected by respondent No. 1 treating respondent No. 4 as a casual dealer and accordingly receipts were also issued for the said amounts. Thus, it is contended th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial Taxes appearing for respondents 1, 2 and 5 and the learned Government Pleader for General Administration Department appearing for respondent No. 3 that as the vehicles were found to be transporting the goods which were not covered by proper documents to establish payment of tax, the same were detained in accordance with law and thereafter the consignee himself having voluntarily paid the tax and penalty, obtained the release. Thus it is sought to be contended that the impugned action cannot be held to be illegal on any ground whatsoever. The question as to whether the assessing authorities and the officers of the vigilance wing at the time of inspection of the vehicles have power to resort to spot collection of the tax and compounding fee without passing any order as to the tax liability has been considered by a Full Bench of this court in Ambica Lamp House, Rajahmundry v. Commercial Tax Officer (Int)-I Enforcement, Hyderabad [2005] 142 STC 551 (AP) [FB]; [2004] 40 APSTJ 56. After referring to the relevant provisions of the A.P. General Sales Tax Act, 1957 and after reviewing the decided cases on the issue, the Full Bench answered the reference with the following observa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings are initiated by the competent authorities, even such proceedings are to be completed after giving notice and sufficient opportunity to the dealer, and thereafter the penalty order could be served along with a notice of demand, giving sufficient time for payment of the amount of penalty, if levied. (vii) If the penalty proposed is unrelated to the assessment of the tax liability, such penalty could be levied independent of the assessment proceedings, but if penalty is related to the assessable tax, such penalty proceedings could be initiated and completed only after completion of the assessment and not before. (viii) The petitioners shall be refunded the amounts collected from them, or be provided with an option to agree for adjustment of the same towards payment of the tax in future. (ix) If the inspecting authorities are of the opinion that the books of account are required to be seized, they can do so only in accordance with the procedure contemplated under the Act and the Rules and not otherwise. Similarly even with reference to the seizure of the goods, the same is to be done as per the procedure provided, and in such cases, the dealer can also avail of the bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 12(7) of the Central Sales Tax (Registration and Turnover) Rules, 1957 provides that the declaration in form F shall be furnished to the prescribed authority within three (3) months after the end of the period to which the declaration or the certificate relates to and that such period may be extended by the prescribed authority if he is satisfied that a sufficient cause is shown. In the light of the abovesaid provisions, we find force in the submission of the learned counsel for the petitioner that it is not open to respondents 1 and 3 to arrive at a conclusion as to the petitioner's tax liability immediately after interception of the vehicles in question. The contention of respondents that the writ petitioner is a stranger to the transaction is untenable since the petitioner is the registered dealer and the burden is on the petitioner to prove that the transaction in question is not an inter-State sale and that the transaction is not liable to be taxed in terms of section 6A of the Central Sales Tax Act. Such liability can be determined only after complying the procedure prescribed under the Act and till such determination is made collection of tax and penalty is undi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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