State challenged Appellate Tribunal restoring original assessment order. Court held penalty initiated with inordinate delay (8 years) without valid limitation could not sustain. Revision dismissed.
Tax Revision Case dismissed; miscellaneous petitions, if any, dismissed; no order as to costs.
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HONOURABLE SRI JUSTICE ASHUTOSH MOHUNTA AND HONOURABLE SRI JUSTICE M.SATYANARAYANA MURTHY
T.R.E.V.C.No. 173 OF 2013
DATED 5TH FEBRUARY, 2014.
BETWEEN
The State of Andhra Pradesh, Rep. by the State Representative before STAT, Nampally, Hyderabad
…..Petitioner
And
M/s. Chida Spinning Mills (P) Ltd., Puttur, Chittoor District.
….Respondent.
THE HON’BLE SRI JUSTICE ASHUTOSH MOHUNTA
AND
THE HON’BLE SRI JUSTICE M. SATYANARAYANA MURTHY
TAX REVISION CASE No.173 of 2013
ORDER: (Per the Hon’ble Sri Justice Ashutosh Mohunta)
The State of Andhra Pradesh has impugned the order dated 31-08-2013, passed in TA.No. 423 of 2009 by the Andhra Pradesh Sales Tax and VAT Appellate Tribunal, vide which, the order passed by the Additional Commissioner (CT) (Legal), Hyderabad, dated 09-01-2009 and the order passed by the
Assessing authority on 27-12-2004 and consequential order, if any, were set aside and the order of the appellate authority dated 29-01-2005 was restored.
In the present case, assessment against the respondent-assessee was done on 27-12-2004, whereas the matter was again reopened by the Additional Commissioner (Legal) for the purpose of levying penalty after delay of eight years on account of mis-use of C-Form by the respondent.
Learned Counsel for the petitioner contends that there is no limitation provided for levying penalty and the penalty proceedings can be initiated at any point of time.
We do not agree with the argument raised by the learned counsel for the petitioner as the department has to initiate penalty proceedings within reasonable time and in any case, not beyond a period of four weeks after passing the assessment order. Having regard to the facts and circumstances of the case, the penalty proceedings initiated with inordinate delay does not sustain in the eye of law.
In view of the above observations, we find no merits in this Revision and hence, the same is dismissed.
Accordingly, this Tax Revision Case is dismissed.
Miscellaneous Petitions pending, if any, shall stand dismissed. There shall be no order as to costs.
JUSTICE ASHUTOSH MOHUNTA
JUSTICE M. SATYANARAYANA MURTHY
Dated 5th February, 2014. Msnro
1 issue framed by the court
Whether penalty proceedings initiated after an inordinate delay of eight years without express statutory limitation can sustain in the eye of law.
The State of Andhra Pradesh, Rep. by the State Representative before STAT, Nampally, Hyderabad
M/s. Chida Spinning Mills (P) Ltd., Puttur, Chittoor District
Ashutosh Mohunta
M. Satyanarayana Murthy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
