Heard Mr.P.Rajkumar, learned counsel appearing for the petitioner and Mr.K.Venkatesh, learned Government Advocate appearing on behalf of the respondents.
2. The learned counsel for the petitioner submits that the petitioner is a registered dealer under the TNVAT Act, 2006 and an assessee on the file of the 1st respondent herein. The petitioner is a trader in yarn and cloth and the petitioner place was inspected by the 1st respondent on 22.08.2011. During the inspection the 1st respondent alleged incorrect availment of input tax credit by the petitioner for the reasons that in the purchase bills, mode of transport and vehicle numbers were not mentioned, L.R. Copies not maintained etc. Further the 1st responded alleged that the above sated reasons proved that the petitioner utilized the input tax credit based on bills only without movement of goods and money consideration which is essential in sale and disallowed the input tax credit of Rs.19,42,927/-.
3. Time and again, this Court held that the officials of the Enforcement Wing cannot collect cheques or even collect tax in the nature of advance tax and this practice has been deprecated and the leading decision on this point is in the case of Hotel Blue Nile Vs. State of Tamil Nadu & others [reported in (1992) 87 STC 513].
4. In the light of the law laid down by this Court in the said decision, the action of the second respondent in retaining the cheques issued by the petitioner is not sustainable.
K.KALYANASUNDARAM, J.
jv
5. Accordingly, the writ petition is allowed and there will be a direction to the second respondent to return the cheque in question within a period of two days from the date of receipt of a copy of this order. No costs.
01.03.2017 jv Index:Yes/No Internet:Yes/No To 1 The Assistant Commissioner (CT) Tirupur North Assessment Circle, Tirupur.
2 The Branch Manager, Dhanalaxmi Bank Ltd., Tirupur Main Road, Avinashi Road, Tirupur 641 602.
W.P. No.42864 of 2016 and WMP Nos.36755 & 36756 of 2016 http://www.judis.nic.in