Allowed

M/s. Vaishnavi Devi Castings v. The Commercial Tax Officer

Telangana HC23 Apr 2021WP/10600/2021

Case brief

AI extract

What is this about?

The High Court allowed a writ petition challenging an assessment order under the Central Sales Tax Act, 1956. The Court held that the order was void due to a violation of principles of natural justice as no personal hearing was afforded and notices were not served. The matter was remitted for fresh consideration.

What did the court decide?

The impugned assessment order was set aside and remitted to the 1st respondent for fresh consideration with direction to serve show-cause notice and afford personal hearing.

M/s. Vaishnavi Devi Castings Vs The Commercial… — Writ and Judicial Review | Telangana HC (2021)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction)

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FRIDAY, THE TWENTY THIRD DAY OF APRIL TWO THOUSAND AND TWENTY ONE

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PRESENT

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THE HON'BLE SRI JUSTICE M. S. RAMACHANDRA RAO AND

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THE HON'BLE SRIJUSTICE T. VINOD KUMAR

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WRIT PETITION NO: 10600 OF 2021

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Between:

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M/s. Vaishnavi Devi Castings, 8-1-20, Yadireddy Nagar Colony, Beside lce Factory, Old Bowenpally, Secunderabad - 500 011, Telangana. Represented by its Authorised Signatory, Mr. Dinesh Kumar, S/o Mr. Krishna Rao.

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...pETtTtoNER

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AND

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The Commercial Tax Officer, (Presently, the Assistant Commissioner of State Tax), Ferozguda Circle, Hyderabad Rural Division, 4th Floor, West Wing, Gagan Vihar Complex, Opposite Gandhi Bhavan, Nampally, Hyderabad - 500 001, Telangana.

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The Commissioner of Commercial Taxes, State of Telangana, Commercial Taxes Complex, M.J. Road, Opposite Gandhi Bhavan, Nampally, Hyderabad - 500 001.

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The State of Telangana, Represented by its Principal Secretary (Revenue) (CT), Telangana Secretariat, Hyderabad - 500 022.

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..,RESPONDENTS

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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 a Writ, Order or Direction one in the nature of Mandamus declaring the Assessment Order in A.A.O. No.51045, dated 31.03.2020, passed by the 1st Respondent, for the period 2015 - 16, under the provisions of the Central Sales Tax Act, 1956, as void, arbitrary, highhanded, mechanical, without jurisdiction and bereft of any valid reasons, apart from being illegal, violative of principles of natural justice and Articles 14 and 265 of the Constitution of lndia.

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lA NO: 1 OF 2021

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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 stay all further proceedings, including any recovery, pursuant to the Assessment Order in A.A.O. No. 51045, dated 31.03.2020, passed by the 1st Respondent, for the period 2015 - 16, under the provisions of the Central Sales Tax Act,^'1956, pending disposal of the above Writ Petition

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Counsel for the Petitioner: SRI J. V. RAO

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Counsel for Respondents: SRI SAI KRISHNA, AGp FOR

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THE ADVOCATE GENERAL

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The Court made the following: ORDER

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HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO

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AND

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HONOURABLE SRI JUSTICE T.VINOD KUMAR

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WP.No.1O600 of 2O2L

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ORDER: lPer Sti Justice M. S. Ramachandra Rao)

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Heard counsel for petitioner and Sri Sai Krishna, Assistant Government Pleader, attached to the office of the Advocate^(ieneral, appearing for respondents.

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In this Writ Petition, petitioner assails the assessment order AAO.No.S1045 dt.31.03.2020 passed by the l",respondent under the CST Act, 1956 for the period 2015- 15.

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Counsel for the petitioner contends that though the impugned order refers to a show-cause notice, reminder notice dt.19.11.201.9 and a fina-l notice dt.06.03.2020, none of these: were served on the petitioner and no personal hearing was afforded to the petitioner. He a-lso states that the impugned assessment order was passed after the lock<lown on account of COVID-19 pandemic commenced from 22.03.2020 end the said order was not even commun:icated to the petitioner till date and the petitioner was asked to pay the tax assessed there under through a telephone call and only then the petitioner

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downloaded the^{copy of impugned order from the website} of the Commercia-l^{Tax Department.}

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Sri Sai Krishna,^{Assistant GovernmentPleader,} attached to the^{office of the AdvocateGeneral, appearing} for respondents^{does not dispute any of these facts'}

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We are therefore^{of the opinion that there has been} a violation of^{principles of natural justicecausing grave} prejudice to the Petitioner.

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Therefore,^{the WritPetition isallowed;the} AAO'No'S1045 impugned Assessment^Order dt.31.03.2020^{passed by the l"t respondentis set aside;} the matter is remitted^{back to the l"t respondent for fresh} consideration;^{l"t respondentis directedto serve a show} cause notice to^{the petitionerindicating the turn over} proposed to be taxed^{and the tax proposed to be levied} thereon as^{per Rute 6a(1)(b)of the Telangana VAT Rules,} 2005; petitiOner^{is granted six weekstime from the date} of receipt of a copy^{of said show cause notice to file reply} along with supporting^{material before 1"t respondent; a} personal hearing shall^{be affordedto the petitioner by the} 1"t respondent;^{and then a reasonedorder shall be} passed by the 1"t respondent^{after consideringthe} material submitted^{by the petitioner,in accordancewith}

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..1

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law and communicated to the petitioner. There sha-li be

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no order as to costs.

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Pending miscellaneous petitions, if any, in this Writ

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Petition shall stand closed.

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SD/.I.NAGALAKSHMI ASSISTANT REGISTRAR

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,TRUE COPY'

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SECTION OFFICER

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To, .1 '' . The i"rr commercial -r.rnrcuda Tax Officer, (Presently, the Assistant Circle. Hvdeiabad Ruial Division, 4th commissioner Floor, West Wing, Gaganof state vifrii CompIei, Opposite^{Gandhi Bhavan, Nampally, Hyderabad - 500 001,} Telanoana.

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z. inJCtmrissioner of Commercial^{Taxes, State of Telangana, Commercial} Taxes Comp,lex, M.J. Road,^{Opposite Gandhi Bhavan, Nampally, Hyderaoao-} 500 001. ihe Principal Secretary^{(Revenue) (CT), State of Telangana Telangana} Secretariat. lvderabad^{- 500022'}

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1. one CC to SriJ V Rao Advocate TOPUCI i*o CC, toGp For^{Commercialtaxes,High Court for the State of Telangana.} IOUTI

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o. tiro'dC. to the Advocate^{General, High Court for the State of Telangana.[OUT]} 7. Two CD Copies

HIGH COURT

DATED: 2310412021

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ORDER

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WP.No.10600 of 2021

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ALLOWING OF THE WRIT PETITION

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t
6 n

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WITHOUT COSTS

M/s. Vaishnavi Devi Castings v. The Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

M/s. Vaishnavi Devi Castings v. The Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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