2015 (5) TMI 206

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....Kanmani Annamalai, Additional Government Pleader JUDGEMENT With consent of both parties, this writ petition is taken up for final hearing at the admission stage itself. 2. In this writ petition, the petitioner, who is a registered dealer on the file of the third respondent, has challenged the compounding notice dated 21.10.2014 issued by the first respondent. 3. The impugned compoundin....

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.... that the first respondent failed to take into consideration the petitioner's objection dated 24.10.2014, wherein, the petitioner has clearly stated that the Consignee has applied for TNVAT registration and a copy of the acknowledgment was attached as Annexure-II. The second contention is that in Ground No.(iv) of the detention notice, it is stated that the goods will be released only after co....

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.... the consignee is an unregistered dealer (Consignee -TIN not registered)            iv. Goods detained at Greams Road, for further verification, goods released only after collecting tax and penalty." 7. A perusal of the above two grounds, it is seen that Ground No.(ii) is the only reason for detention of goods, based on which, the first respo....

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.... tax and compounding fee is held to be bad in law. 8. In the result, the writ petition is allowed and the impugned compounding notice dated 21.10.2014 is quashed and so far as the impugned goods detention notice is concerned, it is held that the proposal of the first respondent to demand tax and penalty is contrary to the circular issued by the Principal Secretary / Commissioner of Commercial T....