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TMI Blog2019 (5) TMI 1627X X X X Extracts X X X X X X X X Extracts X X X X ..... Horizontal Sawing (Trolly) Machines, Log Saw Mill and all kinds of wood working Machines", which were all 'Capital goods' as defined under Section 2(11) of the Tamil Nadu Value Added Tax Act 2006. Being capital goods, taxes are payable only at the rate of 5%. Accordingly, they have also paid the tax for the 'capital goods' to the respondent at the rate of 5%. 3.But, during the inspection in the business premises of the petitioner by the Enforcement Wing Officers of the respondent dated 26.09.2015, the Enforcement Wing Officials collected four cheques for a total sum of Rs. 9,28,317/- from the petitioner on the ground that they had paid lesser tax at the rate of 5% instead of 14.5% for the sales effected to un-registered de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Enforcement Wing Officers. According to him, the goods involved are all capital goods as per Section 2(11) of the Tamil Nadu Value Added Tax Act 2006 and therefore, the tax liable to be paid is only at the rate of 5% on the sale value and not at the rate of 14.5% as demanded by the Enforcement Wing Officers of the respondent. According to him, even without affording sufficient opportunity to the petitioner and without passing any assessment order, the respondent has arbitrarily issued the impugned notice under Section 45 of the Tamil Nadu Value Added Tax Act 2006, calling upon the petitioner's Bankers to remit the entire arrears of outstanding in the petitioner's account by way of demand draft in favour of the Commercial Tax Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner by his letter dated 12.10.2015. 8.Section 2(11) of the Tamil Nadu Value Added Tax Act 2006 reads as follows: "Sec.2(11) "capital goods" means- (a)plant, machinery, equipment, apparatus, tools, appliances or electrical installation for producing, making, extracting or processing of any goods or for extracting or for bringing about any change in any substance for the manufacture of final products; (b) pollution control, quality control, laboratory and cold storage equipments; (c) components, spare parts and accessories of the goods specified in (a) and (b) above; (d) moulds, dies, jigs and fixtures; (e) refractors and refractory materials; (f) storage tanks; and (g) tubes, pipes and fittings thereof used in the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records excepting for the issuance of cheques, there is no conclusive evidence to prove that the petitioner had admitted his liability. 11.For the forgoing reasons, this Court is of the considered view that even without sufficient opportunity being afforded to the petitioner, the respondent has concluded that the petitioner has admitted his liability and proceeded to issue the impugned notice to the petitioner bankers under Section 45 of the Tamil Nadu Value Added Tax Act 2006. 12.In the result, the impugned notice dated 27.01.2016 is hereby quashed and the matter is remanded back to the respondent for fresh consideration and the respondent is granted liberty to initiate fresh legal action after affording sufficient opportunity to the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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