GULLUS Vs. COMMISSIONER, TRADE & TAXES AND ORS.

JUDGEMENT

(1.) The Petitioner which is a sole proprietorship concern, carrying on the business under the name and style of M/s. Gullu's at Shop No. 2, Main Road, Malka Ganj, Delhi 110007, is a registered dealer under the Delhi Value Added Tax Act, 2004 ('DVAT Act'). The Additional Value Added Tax Officer ('AVATO') (Respondent No. 2) visited the business premises of Petitioner on 12th February 2016 asking for production of the books of accounts including sale invoices. The Petitioner states that at the time of the said inspection, the AVATO expressed the view that the items sold by the Petitioner, in particular 'meat', was chargeable to VAT @ 12.5% and not 5% and further insisted that unless the Petitioner gave a cheque of Rs.12 lakhs in favour of the Department of Trade and Taxes (DT&T) at the spot, the business premises of the Petitioner would be sealed. The Petitioner averred that having no other option, the sole proprietor of the Petitioner, Mrs. Sunita Arora, was compelled to hand over a cheque of Rs.12 lakhs.

(2.) On 16th February 2016, the authorised representative of the Petitioner appeared before the AVATO and submitted that the proceedings of the previous date, i.e., 12th February 2016 was illegal. On 20th February 2016, the AVATO along with the Assistant Commissioner, Ward -32 again visited the business premises of the Petitioner and informed her that they have worked out a tax demand of Rs. 28.75 lakhs on account of the difference in the rate of tax and that if she did not immediately deposit the said amount, the premises would be sealed. Under such threat the Petitioner states that she was forced to deposit a sum of Rs. 5 lakhs on the spot through the online system, where the challan was printed out from the website of the DT&T.

(3.) It is in the above background that the writ petition prayed for a direction to the Respondents to return the cheque of Rs.12 lakhs collected from the Petitioner and to restrain them from taking any further coercive action including not sealing the premises of the Petitioner.