M/s.Kakatiya Cement Products v. The Commercial Tax Officer-1 and another
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 2020-12-28. M/s.Kakatiya Cement Products v. The Commercial Tax Officer-1 and another. Read the judgment and...
Judgment text
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY EIGHTH DAY OF DECEN/BER 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: 22810 OF 2020 Between: M/s. Kakatiya Cement Products, 8-6. ,40J2, Kothirampur, Karimnagar' State of Telangana Rep. by its lvlanaging Partner Mr. Billa Prabhakara Reddy. ... 'ET'T'ONER AND 1. The Commercial Tax Officer-1 , Karimnagar. 2. The State of Telangana, Rep. by its Prin-cipal Secretary, Revenue (CT) Department, Telangania Secretariat, Hyderabad. ...
RES'ONDENTS 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 wirt of Mandamus or any other appropriate writ or order or direction declaring the action of the respondent in passing the Exparte Assessment Proceedings, dated'30/03/2020 for the tax period 2015-16 under the central sales Tax Act 1956, without granting an opportunity of being heard to the Petitioner, and not even serving Notices, levying tax of Rs. 1 1,45,0481- on a turnover of Rs. 79,31 ,368/- 14. 5% wrongly treating total turnover as interstate sales and @ branch transfers, as against interstate purchases of PVC Pipes from M/s. The supreme lndustries Limited, Jalgaon to a tune of Rs. 68,45,231/-, interstate sales of RCC Pipes to M/s. lVlegha Engineering and lnfrastructures Limited, Karnataka to a tune of Rs. 5,37,9371-, and stock shifting from the Petitioners Godown to its work site to a tune of Rs.
5,48,200L with way bills, and issulng Arrear Notice, dated O5l11l2O2O through RPAD on 1811112020, without even serving a copy of to law, barred by Assessment Proceedings, dated 30/03/2020, as arbitrary, contrary 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 1st respondent dated 30/03/2020 as null and void. 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 Exparte Assessment Proceedings, dated 30. 03.
2020 of the 1st respondent, for the tax period 2015-16, under the Central Sales Tax Act 1956, including the Arrear Notice, dated 0511112020 issued by the respondent, served through RPAD on 1811112020, pending disposal of the above Writ Petition, as othenvise, the Petitioner will be put to severe loss and hardship. Counsel for the Petitioner: SRl. SHAIK JEELANI BASHA Counsel for the Respondents: SRI M. GOVIND REDDY, SPECIAL COUNSEL FOR COMMERCIAL TAX The Court made the following: ORDER HONOURABLE SRI JUSTICE M. S. RAMACHANDRA RAO AND HONOURABLE SRI JUSTICE T. AMARNATH GOUD WRIT PETITION NO. 22810 0F 2020 ORDER: (Per Sri Justice M. S. Ramachandra Rao) In this Writ Petition, the petitioner challenges A. O. No. 47l10 dt. 30. 03. 2020 passed by the 1't respondent under the CST Act, 1956 for the tax period 2015-16. 2. The petitioner contends that it received an arrear notice d1. 05. 11. 2020 by RPAD on 18. 11. 2020 directing it to pay Rs.
11,45,048/-for the tax period 2015-16 under the CST Act; the petitioner then approached the 1't respondent on 20. 11. 2020 and requested for issuance of a copy of the said Assessment Order, but the l't respondent did not issue it suggesting the petitioner to download the same from the Portal of Commercial Tax Department; and the petitioner's Accountant then downloaded it from the Portal on 21. 11. 2020. 3. According to the petitioner, though the impugned Assessment Order states that a show-cause notice was issued to the petitioner apart from a reminder notice dt. I 9. 1 1 . 2019 and final notice dt. 06. 03 . 2020 and the petitioner did not file objections thereto or avail personal hearing, none of these notices had been served on the petitioner and no personal hearing was also afforded to the petitioner. Thus, there has been violation of principles of natural justice, according to the petitioner.
4, The petitioner also asserts that the order has been passed during the lockdown period declared by the Union of India and the State Govemment on account of Covid-l9 pandemic and that at that time almost all Govemment offices, except those dealing with emergency services. were not functioning. 5. The petitioner also asserts that the impugned Assessment proceedings is barred by limitation for the tax period April,2015 to February, 2016 as per Sub-Rule (5A) of Rule 14A of the CST (Telangana) Rules. 6. Sri M. Govind Reddy, leamed Special Counsel for Commercial Taxes appearing for the respondents does not dispute that the 1. r respondent had not served a show-cause notice or reminder notice dt. 19. 11. 2019 or final notice dt. 06. 03. 2020 on the petitioner and no personal hearing was also afforded to the petitioner. 7. Therefore, we are satisfied that there is violation of principles of natural justice and grave prejudice has been caused to the petitioner. 8.
Accordingly, the Writ petition is allowed; the impugned Assessment Order A. O. No. 47l10 d1. 30. 03. 2020 passed by the l,r respondent and the arrear notice d1. 05. 11. 2020 issued by the 1't respondent are both set aside; rr the matter is remitted back to the l respondent for fresh consideration; the ltt respondent shall serve a show- cause notice on the petitioner indicating the tumover proposed to be assessed to tax and the tax proposed to be levied thereon in accordance with Rule 64(1Xb) of the TVAT Rules, 2005; the petitioner is granted (6) weeks time from the date of receipt of the said show-cause notice to file objections thereto along with suppo. ting material; a personar hearing shall be given to the petitioner by the 1't respondent; and then a reasoned order shall be passed by the l't respondent in accordance with law and communicated to the petitioner. No costs. 9. Pendir. rg miscellaneous petitions, if any, in this petition Writ shall stand closed. SD/. B.
SATYAVATHI ASSISTANT GIS //TRUE COPY// SECTIO OFFICER To, 1. The Commercial Tax Officer-1 , Karimnagar. of Telangana, Z. The Principal Secretary, Revenue (CT) Department, State Telanoana Secretariat. Hvderabad. 3. One iC to Sri Shaik Jeeiani Basha, Advocate [OPUC] for Commercial Taxes a. One CC to Sri M. Govind Reddy, Special Counsel loPUcl 5. Two CD Copies CHR i I I HIGH COURT DATED:2811212020 :. r' 1 HE s74 o ORDER JAN 2021 '05 * * ,.. ;. W. P. No. 22810 of 2020 ALLOWING THE WRIT PETITION WITHOUT COSTS b wYl 5t q
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