M/s.Mana Ayurvedam Private Limited v. The Deputy Commercial Tax Officer
Court: High Court for State of Telangana
Bench: M.S.RAMACHANDRA RAO,T.AMARNATH GOUD
Judgment date:
Case summary
High Court for State of Telangana judgment dated 2020-12-16. M/s.Mana Ayurvedam Private Limited v. The Deputy Commercial Tax Officer. Read the judgment and...
Judgment text
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTEENTH DAY OF DECEIVBER TWO THOUSAND AND TWENTY PRESENT THE HON'BLE SRI JUSTICE M. S. RAMACHANDRA RAO AND THE HON'BLE SRI JUSTICE T. AMARNATH GOUD WRIT PETITION NO: 21798 OF 2020 Betwee n: M/s. lr/ana Ayurvedam Private Limited, Flat No. 194, Medical Health Colony, Vanasthalipuram, Hyderabad - 500 070. Ranga Reddy District. State of Telangana. Rep. by its Managing Director, Mr. Yeshamalla Vishnu Murthy ... 'ET. T'ONER AND 1. The Deputy Commercial Tax Officer, Vanasthalipuram-l Circle, Saroornagar Division, Hyderabad. 2. The Assistant Commissioner (ST), (Formerly Commercial Tax Officer) Vanasthalipuram-1 Circle, Saroomagar Division, Hyderabad. 3 The Branch Manager, HDFC Bank Limited, Vanasthalipuram Branch, Hyderabad. 4 The State of Telangana, Rep. by its Principal Secretary, Revenue (CT) Department, Telangana secretariat' Hyderabad ... RES'.
NDENT' Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ of Mandamus or any other appropriate Writ or Order or direction declaring '1 the action of the st Respondent in passing the Exparte Assessment Proceedings, dated 29. 03. 2020 forthe tax period 2015-16 under the Central Sales Tax Act 1956, without serving Notices and without granting sufficient opportunity of being heard to the Petitioner, as arbitrary, contrary to law, barred by limitation for the tax period April, 2015 to February,2016, the same is in violation of principles of . natural justice, without jurisdiction and consequently set aside the Exparte Assessment Proceedings of the 'l st respondent, dated 29. 03.
2020 lA NO: 1 OF 2020 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of all further proceedings, in pursuance of the Final Assessment Proceedings of the 1"1 respondenl dated 29. 03. 2020, including Garnishee Notice, dated 03. 11. 2020 issued by the 2nd respondent to the 3rd respondent Bank of the Petitioner, for the tax period 2015- 16, under Central Sales Tax Act 1956, pending disposal of the above Writ Petition, as otherwise, the Petitioner will be put to severe loss and hardship Counsel for the Petitioner: SRI L SUDHAKARA REDDY Counsel for Respondents: SRI J. ANIL KUMAR, SPL. GP FOR COMMERCIAL TAXES The Court made the following: ORDER HONOURABLE SRI JUSTICE M. S. RAMACHANDRA RAO AND HONOURABLE SRI JUSTICE T. AMARNATH COUD WRIT PETITION NO. 21798 OF 2O2O ORDER: (Per Sri Justice M S.
Romachandra Rao) In this Writ Petition, the petitioner assails the Assessment Order No. 44439 dt. 29. 03. 2020 passed by the I't respondent under the CST Act, 1956 for the period April, 2015 to March, 20 I6 2. According to the petitioner, no pre-assessment show-cause notice was served on the petitioner though the impugned order says that such a show-cause notice was served on the petitioner; no reminder notice dt. 16. 11. 2019 and final notice dt. 06. 03. 2020 as mentioned in the impugned order were also served on the petitioner; no personal hearing was aftbrded to the petitioner; and there has been violation of principles of natural j ustice causing prej udice to the petitioner. 3. The petitioner also contends that the impugned proceedings ofthe 1't respondent are barred by limitation for the period April,2015 to February, 2016 under Sub-Rule (5A) of Rule 14A of the CST (Telangana) Rules. 4, According to the petitioner, the impugned order has been served on the petitioner on 20. 11.
2020 with a delay of236 days, and prior thereto on 03. 11. 2020 a garnishee notice dt. 03. l 1. 2020 was served by thd. 2nd respondent on the banker of the petitioner, i. e. , the 3'd respondent Lrnder Section 29 of the TVAT Act without even serving a copy of such notice on the petitioner, 5. Sri J. Anil Kumar, leamed Special Counsel for Commercial Taxes appearing for the respondents does not dispute the fact that pre-assessment show-cause notice was not given to the petitioner by the 1" respondent before passing the impugned Assessment Order on 29. 03. 2020 or the fact that the petitioner was not provided any personal hearing. 6. In our opinion, violation of principles of natural justice has caused serious prejudice to the petitioner and this has vitiated the impugned Assessment order. 7. Accordingly, the Writ Petition is allowed; the impugned Assessment Order No. No. 44439 d1. 29. 03.
2020 passed by the 1'1 respondent is set aside; the matter is remitted back to the l't respondent for fresh consideration; the garnishee notice dt. 03. 1 I . 2020 issued by the 2nd respondent is also set aside; the 1't respondent is directed to serve a show-cause notice on the petitioner in accordance with rule 64 of the TVAT Rules indicating the tumover proposed to be taxed and also the tax proposed to be levied on the petitioner; the petitioner is granted six (6) weeks time from the date of receipt of the said show-cause notice to file objections along with supporting material; a personal hearing shall be afforded to the petitioner by the l'1 respondent; and thereafter the 1't / . , respondent shall pass a reasoned order in accordance with law and communicate it to the petitioner. No costs. 8 Pending miscellaneous petitions, if any, in this Writ petition shall stand closed. SDi-CH. VEN KATESWARU LU ASSISTANT REGI /iTRUE COPY// SECTION OFFICER To, '1 .
The Deputy Commercial Tax Officer, Vanasthalipuram-l Circle, Saroornagar Division, Hyderabad. 2. The Assistant Commissioner (ST), (Formerly Commercial Tax Officer) Vanaslhalipuram-1 Circle, Saroomagar Division, Hyderabad. 3. The Branch Manager, HDFC Bank Limited, Vanasthalipuram Branch, Hyderabad. 4. The Principal Secretary, Revenue (CT) Department, State of Telangana Telangana Secretariat, Hyderabad 5. One CC to Sri I Sudhakara Reddy Advocate [OPUC] 6. One CC to Sri J. Anil Kumar, Spl. Standing Counsel for Commercial Taxes (OPUC) 7. Two CD Copies lvBC r o\*r'- HIGH COURT DATED: 1611212020 tle STA 1 k: e . J o o 2 4 DEC 2020 ). "rr, a ,} . ,,"0T. $( ORDER WP. No. 21798 of 2020 ALLOWING THE WRIT PETITION WITHOUT COSTS gs'J ScoPicl ->\. . u\_. F-
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