SUKHI IRON & STEEL COMPANY Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) With the consent of the learned counsel on either side, the writ petition itself is taken up for disposal. What is challenged in this writ petition is an order of the respondent herein passed in the proceedings in RC. No: 1556/2012-A2 dated 22.01.2013, seeking to quash the same as illegal and contrary to the provisions of the Tamil Nadu Value Added Tax Act, 2006 and for further direction to the respondent to restore the Sales Tax Registration under the Tamil Nadu Value Added Tax Act, 2006 and the Central Sales Tax Act.

(2.) According to the petitioner, they are the registered dealer under the Tamil Nadu Value Added Tax Act, 2006, hereinafter referred to as the Act, on the files of the Assistant Commissioner (CT), Thiruvanmiyur Assessment Circle, having TIN No: 33370922552 and C.S.T. No: 721878 dated 13.07.2000. Petitioner is a dealer in Iron and Steel. They are purchasing the said materials in this State from the registered dealers only against specific orders and effect sales within the State against orders received earlier. They also avail INPUT Tax Credit as per the provisions of the Act and they file monthly returns promptly every month. While so, the respondent has cancelled the Sales Tax Registration of the petitioner on 31.05.2010 which has resulted in much hardship and legal problems not only for the petitioner but also to those persons who have genuinely purchased the materials from the petitioner. Against the cancellation of registration, the petitioner has filed a revision before the Joint Commissioner (CT), Chennai South Division. The revisional authority, after hearing the case in detail, has remanded the issue of cancellation of Registration to the Assistant Commissioner (CT), Thiruvanmiyur Assessment Circle, for further action. The said authority, without affording an opportunity to the petitioner to represent the case which was remanded by the Joint Commissioner (CT), Chennai South Division, has cancelled the registration of the petitioner on the ground that there was no business activity noticed in the given address while the petitioner claims to be doing business in the same place. This has affected petitioner's right to do business and hence, the present writ petition.

(3.) The learned Government Advocate, on instructions, submit that the place of business was verified by the Commercial Tax Officer on 13.08.2012 and finding that the place is not sufficient for storing the goods viz. Iron and steel, it being evasion prone commodity, a reference was sent to the Deputy Commissioner (CT), Enforcement (South), for verification as per the guidelines issued by the Commissioner of Commercial Taxes. On verification, Deputy Commissioner Enforcement, in the proceedings dated 09.01.2013 recorded that the place of business is part of the residence of the proprietor and it is not suitable for trading of iron and steel and therefore, the registration of the petitioner was cancelled.