1999 (2) TMI 653

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....PALAMALAI (Administrative Member).-The prayer in this original petition is to set aside the order of the Joint Commissioner (Revision Petition) in Ref. No. JJ1/RP/295/96 dated May 26, 1998 and to order refund of the sum of Rs. 1,05,432 collected without any authority of law. 2.. Thiru V. Sundareswaran, the learned counsel for the petitioner, argued that when the goods were detained at the check....

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....nnai is doing liaison work only and the goods received from Surat are sold in transit without handling the goods by making necessary endorsement on the lorry receipts and collecting "C" forms for the inter-State sales effected from Surat. In such circumstances, the collection of compounding fee is not in order and the order of the Joint Commissioner (Revision Petition) justifying the collection of....

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.... evasion of tax recoverable under this Act. When the goods were detained at the check-post, they were covered by valid documents and there was no evasion of tax as such. Thus we find that the compounding fee collected under section 46(1)(a) on the ground of evasion of tax is totally without jurisdiction. Had there been any constructive delivery of goods after the goods reaching Chennai, the proper....

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....justifying the levy of compounding fee to the extent of Rs. 1,05,432 is quashed and the amount is ordered to be refunded to the petitioner. 5.. It is open to the assessing authority to take action separately, if there was any sale of goods which attracts tax under the Tamil Nadu General Sales Tax Act in pursuance of the receipt of goods in question in Chennai on the basis of documents available....