TaxTMI 
TaxTMI 
2022 (3) TMI 1314
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....f a notice on 25.04.2009 and further payment to the tune of Rs. 76,57,863/- between 28.05.2009 and 30.07.2009 after receipt of the notice on 23.05.2009. 2.The petitioner's Mill is a unit of the Kadri Mills, Coimbatore, and is engaged in manufacturing of Yarn. The petitioner was a registered dealer under the provisions of the Tamil Nadu Value Added Tax Act, 2006 [hereinafter referred to as ''the TNVAT Act''] and the Tamil Nadu General Sales Tax Act, 1959 [hereinafter referred to as ''the TNGST Act]. In the course of its business, the petitioner had purchased cotton from the third respondent. 3.It appears that originally the third respondent had filed return below the taxable limit. The assessment was finalized f....
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....d also you have effected payment to the tune of Rs. 7657863/- from the period 28.05.2009 to 30.07.2009 even after receipt of this office notice on 23.05.2009. The above notices have been issued only under Section 26 of TNGST Act 1959, in which, it has been stated that, any person who holds money on account of the defaulting dealer should pay the amount to the concerned assessing circle if he received notice relating to amounts of arrears to be paid by the dealer. But you have not acted according to Section 26 of TNGST Act 1959 and it is construed that, you have contravened the provision of Sections 26(1)(ii), (4), (5) of TNGST Act, 1959. Hence, you are requested to pay the amount of arrears due by the defaulter dealer at this end, accordi....
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....aler for the amount due under the Act, whichever is less. 6.I have considered the arguments advanced by the learned counsel for the petitioner and the learned Additional Government Pleader for the respondents 1 and 2 and perused the affidavit filed in support of the petition, the counter affidavit filed by the respondents 1 and 2, the documents filed in support of the present Writ Petition and the provisions of the TNGST Act and the TNGST Rules. 7.Section 26 of the TNGST Act provides a mode to recover arrears of tax from a defaulting dealer. Under the said provision, the assessing authority can directly call upon the creditor of a defaulting assessee to make direct payment for discharge of the tax liability of the defaulting dealer. Under....
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....respondent by the petitioner. However, the above said communication dated 04.05.2009, did not accompany a fresh Form B-6 under Rule 18(8) of the TNGST Rules. 9.Therefore, the question that arises for consideration is whether the notice dated 04.05.2009, was sufficient so as to attract liability under Section 26 (4) of the TNGST Act, 1959, which reads as under:- ''26.Further mode of recovery.- (4) Any person making any payment to the dealer after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the payment made or to the extent of the liability of the dealer for the amount due under this Act, whichever is less.'' 10.A reading of Section 26 of the TN....