Capri Bathaid Private Limited and Ors. v. Commissioner of Trade and Taxes - (High Court of Delhi) (02 Mar 2016)
CVAT castigated for frequent illegal exercise of powers
MANU/DE/0501/2016
Sales Tax/VAT
Section 87(6) of the Delhi Value Added Tax Act, 2004 does not enable officers undertaking search and seizure operations under Section 60 of the Act to collect tax dues on the spot from the dealer wholes premises is searched, the Delhi High Court held. The Court also rebuked the Department's failure to issue clear and unambiguous instructions to its officers on the exercise of their powers and jurisdiction. It noted the alarming frequency with which cases regarding flagrant misuse of power were reaching courts. The CVAT was ordered to "issue clear instructions that no VAT Authority will collect in cash or by cheque any alleged tax demand on the spot/field while undertaking a survey, or a search or seizure operation...if any of the officers of the DT and T are found violating any of the instructions, they would be subject to disciplinary proceedings."
Relevant : Bansal Dyechem Pvt. Ltd. v. Commissioner of Income Tax MANU/DE/2865/2015
The Commissioner, Sales Tax, U.P. vs. Suraj Prasad Gouri Shankar MANU/SC/0568/1972
Packirisamy vs. The Deputy Commercial Tax Officer (Enforcement I), Tiruvarur, MANU/TN/2475/2005
Section 87 Delhi Value Added Tax Act, 2004
Tags : DELHI VAT OFFICIALS EXERCISE OF POWER
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