M/S North East Carrying Corporation Limited (NECC) vs State Of Tripura And Others

In respect of the prayers sought for in WP(C) No.37 of 2025, Mr. B.N. Majumder, learned senior counsel for the petitioner submits that in exercise of power under Section 77 of the Tripura Value Added Tax Act, 2004 (TVAT Act, 2004 for short) the respondent No.3 has imposed tax and penalty under Section 77 of the TVAT Act, 2004 in respect of certain alleged violations of failure to produce copy of delivery permits in respect of taxable consignments for the periods September, 2013 to March 2014 vide orders dated 18.03.2024 on the basis of the show cause notices issued under Section 77 of the Act dated 04.07.2023, 14.07.2023, 18.07.2023 (Annexure-3 series). The rectification application made under Section 74 of the TVAT Act has also been rejected by order dated 01.08.2024 and a consequent demand notice has been issued on 26.9.2024. Learned senior counsel for the petitioner has assailed the imposition of tax in exercise of powers under Section 77 of the Act upon the petitioner who is a registered transporter and not a dealer which is in teeth of the provisions of Section 77 and the ratio rendered by the Division Bench of Gauhati High Court, Agartala Bench in case of T.R. Freight Movers versus State of Tripura and others, reported in (2011) 6 Gauhati Law Reports 322. It is submitted that the petitioner has never been assessed for any tax earlier as a registered transporter under the TVAT Act. The impugned show-cause notice and action has been taken only after the petitioner had made an application in Form 33 for refund of the security deposit of Rs.12,00,000/- deposited at the time of taking registration as a transporter. Learned senior counsel for the petitioner has also taken the plea of time bar in view of Section 33 of the TVAT Act as no assessment proceedings can be undertaken beyond the period of five years from the taxable period. Therefore, the writ petitioner has been compelled to approach this Court.

WP(C) No.36 of 2025 also on board today on behalf of the same petitioner seeks to assail the show cause notices dated 2nd August, 2024 issued under Section 77 of the TVAT Act for the tax period 2014-2015, 2015-2016, 2016-2017 and 2017-2018 on same grounds as above. Reliance is placed upon Rule 21(8) of the TVAT Rules, 2005 read with Section 33 of the TVAT Act. Apart from the above, the impugned orders and the show cause notices in both the matters have been assailed on merits as well.

Mr. P. Gautam, learned counsel for the State prays for and is allowed 3(three) weeks’ time to file counter affidavit. The respondents shall also make a categorical reply on the issue on the imposition of tax under Section 77 of the TVAT Act against the petitioner who claims to be a registered transporter only and has never been assessed to any tax in view of the ratio laid down by the Apex Court in case of T.R. Freight Movers (supra).

Reply, if any, may be filed thereafter by the petitioner.

Accordingly, matters are adjourned to be listed on 6th March, 2025.