Inspection powers do not permit immediate tax recovery by cheque collection before assessment under the Tamil Nadu VAT Act.

Inspection powers under Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006 do not authorise officials to recover tax by collecting cheques during a spot inspection before assessment or verification of monthly returns is completed. The court noted that the respondents did not dispute the petitioner's position, and held that cheque collection at the inspection stage was without authority. The cheques were directed to be returned, while the authorities remained free to complete assessment in accordance with law.

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Issues: Whether the enforcement officials had authority to collect cheques towards alleged tax dues during a spot inspection under Section 64(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The inspection provision did not confer power on the officials to recover tax at the time of inspection without completion of assessment or verification of monthly returns. Since the respondents did not dispute the petitioner's stand, the collection of cheques during inspection was held to be without authority.

Conclusion: The collection of the cheques during inspection was unauthorized, and the first respondent was directed to return them to the petitioner. The authorities were left free to complete assessment in accordance with law.

Ratio Decidendi: An inspection power does not, by itself, authorize immediate tax recovery before assessment unless such authority is expressly conferred by law.

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