TaxTMI 
TaxTMI 
2015 (11) TMI 355
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....return of three cheques drawn on HDFC Bank, Baroda, which were collected from the petitioners for alleged unpaid liability of Value Added Tax. The petitioners have further prayed for a direction to the respondents to refund the amounts of Rs. 5,51,187/and Rs. 6,84,747/, which according to the petitioners, were collected under coercion by way of epayment. 3 The petitioners are dealers in motor vehicles. On 08.08.2014, an inspection was conducted by the VAT Authority at the office of the petitioners. According to the petitioners, managing partner of the petitioner No.1firm was away for business tour. In his absence, by using coercive method, the respondents collected four cheques of HDFC Bank of Baroda. The petitioners were later on made to ....
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....ability for payment of Value Added Tax. The department however insists that such free replacement of parts would also invite liability to pay Value Added Tax. 7 In the present petition, we are not required to decide this legal controversy. Suffice to note that till date, there is no adjudication on any of the issues. The petitioners are regularly assessed by the authority under the Value Added Tax Act, 2003. It is not the case of the respondents that regular returns are not filed by the petitioners. Undisputedly, however, for the year under consideration, no assessments have been framed by the adjudicating authority. Thus, the attempt on the part of the respondents to collect disputed tax would amount to recovery before adjudication. 8 Le....
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....lecting cheques from the petitioners, therefore, cannot be countenanced. Under the circumstances, the respondents shall return three cheques collected from the petitioner to them latest by 28th February 2014. This is without prejudice to the power of the competent authority to pass appropriate order, if so found necessary to protect the interest of revenue. Petition is disposed of accordingly." 10 Later on, on 12.06.2014, in Special Civil Application No.7461 of 2014, this Court has observed as under : "7. In view of the reasons stated above, the present petition succeed in part and the action of the respondents in collecting the cheques totalling to Rs. 3,08,50,688/, as mentioned in para32( B) of the petition, without passing any fin....