Allowed

M/s. Vyjayanth Engineers and Profiles (P) Limited v. Commercial Tax Officer

Telangana HC15 Apr 2021WP/9665/2021

Case brief

AI extract

What is this about?

The Hyderabad Writ Bench allowed a petition challenging an assessment order under the central sales tax Act for failing to serve a show cause notice or grant a hearing. The court set aside the order and notice, remitting the matter for fresh consideration with proper notice and a personal hearing.

What did the court decide?

Impugned assessment order and arrears notice set aside; matter remitted for fresh consideration with show cause notice, personal hearing, and reasoned order.

M/s. Vyjayanth Engineers and Profiles (P)… — Civil Procedure and Limitation | Telangana HC (2021)

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¶2

HIGH COURT FOR^{THE STATEOF TELANGANA} AT HYDERABAD

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(Special Original Jurisdiction)

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THURSDAY, THE FIFTEENTH^{DAY OF APRIL} TWO THOUSAND AND^TWENTYONE

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PRESENT

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THE HON'BLE SRI^{JUSTICEM. S. RAMACHANDRA RAO}

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THE HON,BLE SNI.TTHT?CC^{T. VINOD KUMAR}

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WRIT PETITION NO^{: 9665 OF 2021}

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Between

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Ir.4/s. Vviavanth Enqineers^{andProfiles(P) Limited, rep. by its Director, [t/lrIV].} V"iirg6b,irlsheJ^{r.lt ee, aHrl ntr, Ramabhandrapuram,Hvderab"l;uror1ro33.*}

¶11

AND

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Commercial Tax Officer,^{RamayanpetRoad, Ir/edak'} z. State oi Telangana,^{,."p. ov} !t.^{Frin'cipal secretary to Government, Revenue (CT-} ll) Department, Secretariat,^Hyderabad ...RE.'.NDENTS

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...RE.'.NDENTS

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Petition under^{Article226 of the constitution of lndia praying that in the} circumstances^{stated in the affidavitfiled therewith'the High Court may be pleasedto} issue a writ of Mandamus^{or any other appropriate writ or order or directionto set-} aside the impugned^{order of the 1st Respondentpassed in AO No'40537 dated} 28.3.2020 and^{consequentlyset-aside the arrears notice dated9.11.2020for the} assessment^{yeat 2015-16 underthe central salesTax Act, 1956 as being illegal,} contrary to^{recordand in violationof principlesof natural justice and consequently} direct the 1st^{Respondentto re-assess the Petitionerfor the assessment year 2015-} l6,aftergivingpropershowcausenoticeandanopportunitytofileobjectionsanda personalhearingandthereafterpassassessmentorderinaccordancewithlaw

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lA NO: 1 OF 20 1 Petition under^{Section151 CPC prayingthat in the circumstances stated in the} affidavit filed^{in support of the petition,the High Court may be pleasedto grant stayof} allfurtherproceedingpursuanttotheimpugnedorderofthelstRespondentdated 28.3.2020 for the^{assessment year 2015-16 underthe CST Act' 1956'pending} disposal of the^{writ Petition as otherwise the Petitionerwill be put to severe loss and} hardship.

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Counsel for the^{Petitioner:SMT' K. UMA}

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Counsel for Respondents:^{SRISAI KRISHNAAGP FOR} 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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WRIT PETITI^{ON No.9665 0F 2O2L}

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ORD ER:^{(PerSi Justice M,S.RanachqndraRao)}

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Heard counsel^{for petitioner and Sri Sai Krishna'} Assistalt^{GovernmentPleader,attachedto the office of the} Advocate^{General,appearing for respondents'}

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In this^{Writ Petition, petitionerassails the assessment} order AO.No.40537^{dt'28'O3'2O2O passed by thel-"t} respondent^{under the CST Act, 1956 for the period April,} 2015 to^{March, 2016'}

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Counsel^{for thepetitioner contends thaton} 29.07.2018^{itself the petitioner had filed certainC-Forms} coveringtheturnoverofRs'11'78'926/-'butinthe impugned^{final assessment order' the l"t respondent has} not adverted^{to it and no reason is assigned for its non-} consideration.^{It is also contendedthat the impugned} assessment^{order has been passedwithoutserving any pre-} assessment^{show-causenotice or final notice dt'06'03'2020} as is mentioned^{in the impugnedorder and no opportunity} of personal^{hearing was provided to the petitioner'}

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Sri Sai Krishna, Assistant Government Pleader, attached to the office of the Advocate General, appearing for respondents is unable to show service of pre-assessment show-cause notice or fina-l notice, or proof that a personal hearing was afforded to the petitioner and is also unable to explain why the C-Declaration forms submitted by the petitioner on 29.07.20 18 to the l-"t respondent are not considered while passing the impugned order.

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In view of these facts and circumstances, we are of the opinion that there has been a violation of principles of natural^justice causing serious prejudice to the petitioner.

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Therefore, the Writ Petition is allowed; the impugned Assessment Order AO.No. 40537 dt.28.03.2020 passed by the 1"r respondent as well as the arrea-rs notice dt.09.11.2O2O also issued by the l"t respondent, are both set aside; the.matter is remitted back to the l"t respondent for fresh consideration; 1"t respondent is directed to serve a show cause notice to the petitioner indicating the turn over proposed to be taxed and the tax proposed to be levied thereon as per Rule 64(1)(b) of the Telangana VAT Rules, 2005; petitioner is granted six weeks time from the date of receipt of a copy of said show cause notice to file reply

along with supporting materia-l before lst respondent; a personal hearing shall be afforded to the petitioner by the lst respondent; and then a reasoned order shall be passed by the 1"t respondent after considering the material submitted by the petitioner including the C-Declaration forms, in accordance with 1aw and communicated to the petitioner. There shall be no order as to costs.

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Pending miscellaneous petitions, if any, in this Writ Petition shall stand closed.

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SD/- T.TIRUMALA DEVI ASSISTANT REGISTRAR //TRUE COPY' 6"

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SECTION OFFICER

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To,

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The Commercial Tax Officer, Ramayanpet Road,^It/ledak. 2. The Principal Secretary, Revenue^(CT-ll) Department,^{State of Telangana} Secretariat, Hyderabad

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One CC to Smt. K. Uma Advocate [OPUC]

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Two CCs to the Advocate General, High Court for the State^{of Telangana.} [OUT] 5. Two CCs to GP For Commercial Taxes, High Court^for the^{State of Telangana.} tourl

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Two CD Copies MBC

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HIGH COURT

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DATED: 1510412021

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¶47

ORDER

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WP.No.9665 ot 2021

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ALLOWING OF THE WRIT PETITION

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WITHOUT COSTS

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M/s. Vyjayanth Engineers and Profiles (P) Limited v. Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

M/s. Vyjayanth Engineers and Profiles (P) Limited v. Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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