9911796707
TMI Blog2016 (3) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... he Delhi Value Added Tax Act, 2004 ('DVAT Act'). The Additional Value Added Tax Officer ('AVATO') (Respondent No.2) visited the business premises of Petitioner on 12th February 2016 asking for production of the books of accounts including sale invoices. The Petitioner states that at the time of the said inspection, the AVATO expressed the view that the items sold by the Petitioner, in particular 'meat', was chargeable to VAT @ 12.5% and not 5% and further insisted that unless the Petitioner gave a cheque of Rs. 12 lakhs in favour of the Department of Trade and Taxes (DT&T) at the spot, the business premises of the Petitioner would be sealed. The Petitioner averred that having no other option, the sole proprietor of the Petitioner, Mrs. Suni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely returned. At the request of Mr. Satyakam, the matter was then adjourned to the following date, i.e., 23rd February 2016. The concerned AVATO was also required to remain present on the next date. 5. On 24th February 2016 the following order was passed: 1. Mr Satyakam, learned Standing counsel for the Respondent informs the Court that the cheque which was collected at the premises of on 12th February, 2016 was returned to the Petitioner yesterday. He further states that in light of the observations of the Court at the hearing of this case yesterday and in light of the orders dated 3rd February 2016 in W.P.(C) No.1820/2013 (Larsen And Toiibro Ltd. v. Govt. of NCT of Delhi) and 27th January, 2016 in W.P.(C) No.714/2016 (Shree Ashtvinayak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h reads as under: "Sub: Guide lines for officials/officers of Trade & Taxes Department during conduct of survey/inspection. Recently the Hon'ble High Court of Delhi while delivering the judgment in the matter of M/s. Gullu's in Writ Petition No. 1566/2016 and M/s. Capri Bathaid Pvt. Ltd. in WPC No. 8913/2014, has taken a very serious view on the issue that while the department officials/officers visit the premises of a dealer for conducting survey or inspection, in some cases, the departmental officials/officers accepted cheques as surety against due tax from the dealers. This has been found to be not in conformity with the mode of collection of VAT receipts by the department. Manner of payment of tax, interest and penalties have been sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of VAT as envisaged under the DVAT Act and the Delhi Value Added Tax Rules, 2005 ('DVAT Rules'). However, the Court is not satisfied with the wording of the above circular. It still leaves it open to VAT Authorities to collect tax either through the e-payment mode or the physical offline mode at the time of conducting a survey or an inspection of the business premises of a dealer. 8. The Court notes that despite its order dated 3rd February 2016 in W.P.(C) No.1820/2013 (Larsen And Toubro Ltd. v. Govt. of NCT of Delhi) and judgment 2nd March 2016 in W.P.(C) No. 8913/2014 (Capri Bathaid Private Limited v. Commissioner of Trade & Taxes) (both of which have been noted in the above Circular), clear and categorical instructions have not been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advise the dealer to make the payment only in the modes permitted in terms of the DVAT Act and DVAT Rules and at the places/counters designated for that purpose. The CTT will make it clear in the instruction that it is not permissible for an officer of the DT&T to collect cheque or cash at the time of survey, inspection or sealing proceedings under threat of sealing the premises under Section 60 of the DVAT Act. The CTT shall also make it clear that the said instructions shall be strictly complied with; that any infraction thereof will be strictly dealt with including but not limited to disciplinary action against the concerned officer(s). 11. The writ petition and the application are disposed of in the above terms. 12. It will be open t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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