2007 (6) TMI 490

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....il cake, etc. He was running the business from March 15, 2006 and the goods dealt with by the petitioner are exempted from tax. The respondent issued a notice in TIN No. 33952282949/2007-08, dated April, 19, 2007 stating that the petitioner had purchased gingelly seeds from Regulated Market Committee, Ariyalur, during the year 2006-07, but he did not file any return or paid any tax.   Therefore, the respondent determined the turnover of the petitioner's firm rovisionally at Rs. 5 lakhs with a tax liability of Rs. 20,000 and fixed the additional security at Rs. 30,000 as per section 39(4) of the Tamil Nadu VAT Act, 2006. The petitioner was required to pay the additional security within three days failing which the registration ce....

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....of excess tax which is not permissible under the statute. I have heard Mr. Ramanathan, learned counsel appearing for the petitioner and Mr.J.Ganesan for the State and perused the materials on record. Before adverting to the facts of the case, the relevant portion, namely, section 39(4), (5), (14) and (15) of the Tamil Nadu VAT Act, 2006 is extracted hereunder: "(4) Where it appears necessary to the authority granting a certificate of registration under this section so to do for the proper realisation of the tax payable under this Act it may, at any time, while such certificate is in force, by an order in writing and for reasons to be recorded therein, require the dealer to whom the certificate has been granted, to furnish within su....

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.... grant 15 days time to prove that he has not purchased gingelly oil seeds from the Regulated Market Committee, Ariyalur. Though his request for time has been acknowledged by the respondent, he refused to grant time and proceeded to cancel the licence issued under the Tamil Nadu VAT Act, 2006 on the ground that the petitioner did not deny the purchase of gingelly oil seeds from the Regulated Market Committee, Ariyalur, and he failed to pay the tax or file returns. For the abovesaid reasons, the respondent has cancelled the registration certificate issued under the Tamil Nadu VAT Act, 2006 and Central sales tax registration certificate of the petitioner with effect from April 1, 2007. A reading of the provisions of the Tamil Nadu Value Add....