Disposed

M/s.Qualitronics Madras (P) Ltd. v. The Commercial Tax Officer

Andhra Pradesh HC11 Feb 2021WP/3147/2021

Case brief

AI extract

What is this about?

, The High Court disposed of the writ petition challenging a garnishee notice for VAT penalty recovery. The court granted the petitioner 10 days to deposit Rs.10 Lakhs and 45 days for the balance, allowing access to frozen bank accounts upon the first payment., pending outcome of a connected writ petition.

What did the court decide?

Petitioner granted 10 days to deposit Rs.10 Lakhs and 45 days for balance; allowed to unfreeze bank accounts upon first payment.

M/s.Qualitronics Madras (P) Ltd. Vs The… — Writ and Judicial Review | Andhra Pradesh HC (2021)

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THE HON'BLE SRI JUSTICE U. DURGA PRASAD RAO AND THE HON’BLE Ms.JUSTICE J. UMADEVI

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Writ Petition No.3147 of 2021

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ORDER : (per UDPR,J)

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The petitioner seeks a Writ of Mandamus declaring the action of respondent No.1 in issuing the impugned garnishee notice, dated 21.10.2020, for recovery of the arrears of penalty of Rs.60,36,025/under Section 29 of the Andhra Pradesh Value Added Tax Act, 2005 as illegal.

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2. The other particulars are not germane at this juncture.

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3. Heard learned counsel for petitioner, Sri Challa Gunaranjan and learned Government Pleader for Commercial Taxes for respondents.

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4. At the outset, the submission of learned counsel for petitioner is that out of the penalty amount of Rs.60,36,025/-, the petitioner already deposited an amount of Rs.40,58,300/- and the balance amount is concerned, he issued 14 cheques, out of which, two cheques for Rs.5 Lakhs each were bounced. Learned counsel would submit that considering these facts, suitable time may be given to the petitioner to deposit at first the amount covered by the returned cheques and thereafter to deposit the balance amount.

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5. Learned Government Pleader though agreed for this course, however, requested to grant only a minimum time.

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6. Having regard to the above respective submissions, the petitioner is granted 10 days time from today to deposit the amount of Rs.10 Lakhs covered by both the cheques which were bounced. Further, the petitioner is granted 45 days thereafter to deposit the balance of the penalty amount as mentioned in the garnishee notice, failing which, the department can proceed against the petitioner in accordance with law. The above payments shall be subject to the outcome of W.P.No.7594 of 2019. On deposit of Rs.10 Lakhs as noted supra , the petitioner is at liberty to operate his bank accounts which were freezed.

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7. With these observations, this writ petition is disposed of. No costs.

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As a sequel, Interlocutory Applications, if any pending, shall

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stand closed.

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__________________________ U. DURGA PRASAD RAO, J

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______________ J. UMADEVI, J

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Dt: 11.02.2021. MS

M/s.Qualitronics Madras (P) Ltd. v. The Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

M/s.Qualitronics Madras (P) Ltd. v. The Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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