Enforcement Wing cannot retain cheques as advance tax during inspection; return to dealer was directed.

Enforcement officials under the Tamil Nadu Value Added Tax Act cannot collect cheques or realise tax as advance tax during inspection, and such practice is impermissible. Retention of cheques taken by the Enforcement Wing from a registered dealer was therefore unsustainable, and the respondents were directed to return the cheques.

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Issues: Whether the cheques taken and retained by the Enforcement Wing during inspection could be directed to be returned to the dealer.

Analysis: The dealer was registered under the Tamil Nadu Value Added Tax Act, 2006, and the cheques were taken during an inspection by the Enforcement Wing. The Court reiterated that enforcement officials cannot collect cheques or realise tax in the nature of advance tax, and that such a practice has been deprecated. In view of the settled position, retention of the cheques was held to be unsustainable.

Conclusion: The issue was decided in favour of the petitioner, and the respondents were directed to return the cheques.

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