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TMI Blog2012 (11) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... concern and is engaged in the business of trading in various commodities like jeera etc. For such purpose, the petitioner is a registered dealer under the provisions of the VAT Act and files its regular returns under the said Act. The petitioner trades in such commodities through the commodities exchange. The goods are warehoused at notified warehouses and upon sale of the goods, only the ownership changes hands, whereas the goods continue to lie at the same place. 4. The petitioner purchased the goods in question, mainly jeera, which is lying at godown in Unja. 5. The respondent No.2 under the impugned communication dated 12/15.10.2012, conveyed to the petitioner that such goods are under "stop delivery" order. It was not possible to lift such prohibitory order due to the reason that the petitioner had made certain purchases in the past from one M/s Surya Vinayak Industries Ltd., whose registration under the VAT Act was cancelled with effect from 1st January, 2011. The petitioner had made purchases from said M/s Surya Vinayak Industries Ltd. and upon such purchases, had claimed credit to the tune of Rs. 18,66,689/- for such purchases made after 1st January, 2011. Since the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal or is opposed to the principles of natural justice or is passed without any authority or jurisdiction, the Court may, at its discretion, entertain the petition. 10.Insofar as the main matter is concerned, we may first examine the contention with respect to the availability of the tax credit to the petitioner for the purchases made from M/s Surya Vinayak Industries Ltd. after 1st January, 2011. 11.Section 11 of the VAT Act pertains to tax credit. Subsection (1) (a) thereof provides that a registered dealer who has purchased the taxable goods shall be entitled to claim tax credit equal to the amount specified in clauses (i) to (iii) thereof. Sub-section (5) of section 11, however, provides that notwithstanding anything contained in the Act, tax credit shall not be allowed for purchases specified in clauses (a) to (p) thereof. Sub-clauses (a) and (mmmm), which are relevant for our purpose, read as under :- "(a) made from any person other than a registered dealer under this Act; (mmmm) made from a dealer after the name of such dealer has been published under sub-section (11) of section 27 or section 97;" 12.Section 27 of the VAT Act pertains to suspension or cancellation of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er : "Section 27(11)- The Commissioner shall publish in the manner as may be prescribed the particulars or dealers whose certificate of registration has been suspended or cancelled under the provisions of this Act." 14.From the above statutory provisions, it can be noticed that under section 11 of the VAT Act, a registered dealer who has purchased taxable goods can claim tax credit as specified therein. Sub-section (5) thereof, however, provides for cases where such credits shall not be allowed for purchases specified therein. Clause (a) of sub-section (5) of section 11 pertains to the purchases made from any person other than a registered dealer under the Act. In contrast, clause (mmmm) of sub-section (5) of section 11 pertains to the purchases made from a dealer after the name of such dealer has been published under subsection (11) of section 27 or section 97. In particular, section 27(11) pertains to publication of particulars or dealers whose whose certificate of registration has been suspended or cancelled under the Act. 15.In case of a dealer whose registration has been cancelled or suspended, thus, the purchases made from such a dealer would be ineligible for tax credit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and inspection of accounts and documents and search of premises. Sub-section (6) thereof, on which reliance was placed, reads as under : "[6] Where - [a] a carrier or bailee or any person to whom goods were delivered for transport has kept the said goods in any vehicles, vessel or place; and [b] the Commissioner has reason to believe that tax on such goods is or is likely to be evaded, the Commissioner, may stop the vehicle or the vessel carrying such goods and enter and search the vehicle, vessel or place and inspect the goods and records relating to such goods and elicit such information from the carrier, bailee or any person as is relevant." 19.A perusal of the said provision would make it clear that the Commissioner can stop the vehicle or the vessel carrying the goods and enter and search the vehicle, vessel or place in cases where the clauses (a) and (b) apply and inspect the goods and records relating to such goods and elicit such information from the carrier, bailee or any person as is relevant. 20.Clauses (a) and (b) of sub-section (6) of section 67 of the VAT Act pertain to cases where a carrier or bailee or any person to whom goods were delivered for transport ..... 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