Madras High Court The Appellate Assistant Commissioner vs M/S. Mahe Auto Fuel Enterprises on 16 February, 2018 DATED: 16/2/2018 C O R A M The Honourable Mr.Justice S.Manikumar a n d The Honourable Mrs.Justice V.Bhavani Subbaroyan Writ Appeal No.329 of 2018 1. The Appellate Assistant Commissioner Commercial Tax Department Pondicherry. 2. The Commercial Tax officer Mahe Pondicherry State. ... Appellants Vs 1. M/s. Mahe Auto Fuel Enterprises Bharath Petroleum Dealer rep. By its Partner Mr.K.E.Naushad Poozhithala Mahe Pondicherry. 2. Bharat Petroleum Corporation Ltd rep. By its Manager (Retail) Calicut Territory Office Calicut. ... Respondents Appeal filed under Clause 15 of the Letters Patent against the order dated 22/12/2017 and 9/1/2018, in W.P.No.33594 of 2017. For appellants ... Mr.T.P.Manoharan Senior Counsel Assisted by Mr.J.Kumaran Government Advocate (Pondy) For respondents ... Mr.D.Geetha J U D G M E N T (Order of the Court was made by S.Manikumar,J) With the consent of the parties, writ appeal itself is taken up for final disposal. 2. Impugned notice, No.640/CTD/CTO(M)/201718, dated 12/12/2017, challenged, in W.P.No.33594 of 2017, is extracted hereunder: The dealer M/s. Mahe Auto Fuel Enterprises with TIN No.34030006315 who is a registered dealer in the books and records of the Commercial Tax Officer, Mahe has defaulted to make their monthly payment due for the months of August, September and October 2017, for which they have filed returns showing the tax due as follows: August ... Rs. 85,04,645 September ... Rs. 78,59,360 October ... Rs. 54,38,435 Total Rs.2,18,02,440 According to the second proviso to Section 24 of Puducherry Value Added Tax Act, 2007 read in conjunction with the first proviso of the same Section, if a dealer failed to pay the tax due along with the return within the time prescribed (15th of the subsequent month) the whole amount outstanding on the date of default along with the penalty at 2% of such amount for each month of default or part thereof shall become immediately due and shall be the first charge on the properties of the dealer liable to pay the tax or penalty. The dealer has paid the part of the total outstanding dues as follows: S.No. D.D.No. Chall.No Challan Dt Clear date Tax 1 758097 5/17/448 27/10/2017 31/10/2017 50,000 2 758293 5/17/479 28/11/2017 30/11/2017 25,00,000 3 758299 5/17/480 28/11/2017 30/11/2017 10,00,000 4 758305 5/17/481 28/11/2017 30/11/2017 25,00,000 5 758306 5/17/482 29/11/2017 2/12/2017 24,54,645 6 758308 5/17/484 30/11/2017 2/12/2017 15,00,000 1,00,04,645 An amount of Rs.1,17,97,795/ is pending for payment by the dealer for the months of September 2017 and October 2017 along with interest for the two months of September 2017 and October 2017. Therefore, the dealers are hereby instructed to remit the above mentioned amount on or before 22/12/2017 which is outstanding for the past two months, failing which the recovery action will be initiated as per Section 37 of Puducherry Value Added Tax Act, 2007. Till then the application of CForm cannot be entertained by this office. 3. We have gone through the contents of the supporting affidavit to the writ petition and find that the first respondent has admitted that, as on 20/10/2017, tax to be paid was Rs.2,18,02,440/. But the first respondent has paid a sum of Rs.1,00,04,645/, on various dates, as detailed hereunder: (i). D.D.No.758097 dated 26/10/2017 for Rs.50,000/ (ii). D.D.No.758293 dated 27/11/2017 for Rs.25,00,000/ (iii). D.D.No.758299 dated 27/11/2017 for Rs.10,00,000/ (iv). D.D.No.758305 dated 28/11/2017 for Rs.25,00,000/ (v). D.D.No.758306 dated 29/11/2017 for Rs.24,54,645/ (vi). D.D.No.758308 dated 30/11/2017 for Rs.15,00,000/ 4. Submission of the first respondent before the writ Court, in W.P.No.33594 of 2017, was that despite payment of 1,00,04,645/, the request for issuance of Cform, for the months of June to August 2017, has been rejected. 5. Perusal of the order, dated 22/12/2017, made in W.P.No.33594 of 2017, impugned in the instant writ appeal shows that the first respondent herein, has admitted their liability and submitted that it was not their intention not to pay tax. But due to unexpected situation and stringent financial crisis, they were unable to pay tax. Before the writ Court, submission has also been made that a sum of Rs.1,00,04,645/, towards arrears of sales tax has been paid to the Commercial Tax Officer, Mahe, Puducherry State, second appellant, in the instant writ appeal, and that the second appellant has received the said payment. It was further pleaded b