Allowed

M/s. Viswakirthi Conveyors Pvt. Ltd. v. The State of Telangana and 2 others

Telangana HC12 Jul 2022WP/10031/2021

Case brief

AI extract

What is this about?

High Court permitted two writ petitions by taxpayers challenging tax assessments and the validity of the Telangana Value Added Tax Amendment Act, 2017, following a precedent judgment. The petitions sought quashing of orders on grounds of limitation and constitutional violation. The court also considered stay applications.

What did the court decide?

The writ petitions were allowed in the terms of the judgment in W.P. No. 7393 of 2020. Stay applications were granted pending disposal of the writs.

M/s. Viswakirthi Conveyors Pvt. Ltd… — Constitutional and Fundamental Rights | Telangana HC (2022)

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

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TUESDAY, THE TWF.LFTH DAY OF JULY TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HONOURABLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION Nos.21412 ot 2020 & 10031 of 2021

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WRIT PETITION N0: 21412 OF 2020

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Between:

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M/s. Meghana Enterprises, H.No.4-4-32135, Brahmanawadi, tVahabubnagar-509001, Mahabubnagar District, Telangana, rep. by its Proprietor, B. Suresh tllJ=r,r,Oa

¶9

AND

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The State of Telangana, rep. by the Principal Secretary to the Government, Revenue (CT) Department, Secretariat Buildings, Hyderabad, Telangana.

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The Assistant Commissioner (ST), Mahabubnagar Circle, Nalgonda Division, Near Government Hospital, Mahabubnagar, Mahabubnagar District, Telangana.

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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 an appropriate Writ, Order or Direction more particularly in the nature of MANDAMUS:

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(i)

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(ii)

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Declaring the Telangana Act No. 26 of 2017 (An Act to further amend Telangana Value Added Tax Act, 2005) passed in violation of Articles 246,246A, Entry 54 of List ll, Section 19 of the Constitution (10l"tAn.endment) Act, 2016, violative of Article 1a and 19(1)(g) of the Constitution of lndia on the ground of being manifestly arbitrary, unreasonable and oppressive and as ultra vires the Constitution and Void Ab lnitio,

¶17

Alternately declaring that Telangana Act No. 26 of 2017 (An Act to further amend Telangana Value Added Tax Act, 2005) which is deemed to have come into force w.e.f. 1710012017, is prospective in operation and is not applicable to the Tax Periods prior to 1710612017 ,

¶18

{

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(iii) Declaring that the impugned Assessment Order vide AAO No.63977, dated 22togl202o, passed by the Second Respondent, under the Telangana Tax on Entry of Goods into Local Areas Act, 2001, for the Tax Periods 2O15-16, is barred by Limitation, and that it is also contrary to the provisions of the Telangana Tax on Entry of Goods into Local Areas Act, 200 1, vlolative of the principles of natural^justice, and illegal, and (iv) Consequently set aside the impugned Assessment Order vide AAO No.63977, dated 2210912020, passed by the Second Respondent for the Tax Periods 2015-16 under the Telangana Tax on Entry of Goods into Local Areas Act, 200 1.

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lA NO: 1 OF 2020

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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 grant stay of all further proceedings, including stay of collection of the disputed tax, in pursuance of the impugned Assessment Order vide AAO No.63977, dated 221 0912020, passed by the Second Respondent, for the Tax Periods 2015-16 under the Telangana Tax on Entry of Goods into Local Areas Act, 2005, pending disposal of the above Writ Petition.

¶22

WRIT PETITION NO: 10031 OF 2021

¶23

Between:

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M/s. Viswakirthi Conveyors P!,1. Ltd, Bhanu Nilayam, Plot no.^'159, Phase-lll, lDA, Cherlapally, Medchal District, Hyderabad - 500051, rep. by its Managing Director, K. Bhargava P.am.

¶25

...PETITIONER

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AND

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1 . The State of Telangana, rep. by the Principal Secretary to the Government, Revenue (CT) Department, Telangana Secretariat Buildings, Hyderabad, Telangana

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The Deputy Commissioner (CT), Saroornagar Division, near Ajanta Gate, Exhibition Grounds, M.J. Road, Nampally,Hyderabad - 500001, Telangana.

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The Commercial Tax Officer, Nacharam Circle, Saroornagar Division, Near Ajanta Gate, Exhibition Grounds, M.J Road, Nampally, Hyderabad - 500001, Telangana

¶30

...RESP.NDENTS

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Petition^{under Nlicle 226 of} the Constitutton of lndia^praying that^{in the} circumstances^stated in^{the affidavit} filed^{therewith,the High Court may be} pleased to issue an appropriate Writ Order or Direction more particularly in the nature of MANDAMUS 246,2464, Entry 54 of List ll, Section 19 of the^Constitution (10'1't Amendment) Act, 2016, violative of Article 14 and 19(1Xg) of the Constitution of lndia on the^ground of being manifestly arbitrary, unreasonable^and oppressive and as ultra vires the Constitution and Void Ab lnitio,

¶32

(ii) Alternately declaring that Telangana Act No. 26 of 2O17 (An Act to further amend Telangana Value Added Tax Act, 2005) which is deemed to have come into force w.e.f. 17-06-2017, is prospective in operation and is not applicable to the Tax Periods prior to17-06-2017,

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(iii) Declaring that the impugned Suo lri'lotu Revision Order vide DC 99, dated 27-02-202'1. passed by the Second Respondent, for the Assessment Year 2011-12 CST, is barred by limitation, violative of the^principles of natural^justice, contrary to law, contrary to the binding^judgment of the Tribunal, and illegal and not sustainable even on merits.

¶34

lA NO: 1 OF 2021

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Petition under Section 15'l 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 including stay of collection of the disputed tax in pursuance of the impugned Suo Motu Revision Order vide DC no. 99, daled 2702-2021 . passed by the Second Respondent, for the Assessment Year 2011-12 under the Central Sales Tax Act, 1956,^pending disposal of the above Writ Petition.

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Counsel for the Petitioner in both cases: SRl. G, NARENDRA CHETry

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Counsel for the Respondent No-1 in both cases: SRI K. RAJI REODY,

¶38

SENIOR S.C. FOR COMMERCIAL TAX

¶39

Counsel for the Respondent No-2 in both cases: GP FOR COMMERCIAL TAX The Court made the following: COMMON ORDER

¶40

¶41

THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN

¶42

AND

¶43

THE HONOURABLE MRS JUSTICE SUREPALLI NANDA WRIT PETITION Nos.214t2 0f 2020 & 10031 0f 2()21

¶44

a0ryI_U_O-X[ QBD-E8:^{(Perthe llon'ble the Chie.f,trtstict' tJi( tihuuotlt}

¶45

t'lcard Mr. G.Narendra Chettr'. lcarned cotrnsel lor the petitioners and Mr'. K. Ra.li Reddy, lear-ned Senior Star-rding Counsel, Commercial Tax for the respondents.

¶46

[t is submitted that issur- raised in these u,rit petitions has been arsr.r,ered by this Court in W.P.No.7B93 oi 2O2O and batch (M/s.

¶47

Sri Sri Engineering Works v. Deputy Commissioner (CT)) decided cn 05.0)'2022

¶48

]. Acccirdingll', the Writ Petitions are allou.ed irr terms cf the aforesaid judgment. Fiowever, there shal] be no order as to costs.

¶49

[. Miscellaneous applicl]tions pending. if any, shall stald

closed

SPili++-Et'i15"#

,Ecfid'il^oFFlcER '/rRuE^coPY/'

¶54

To, 1. The Principal^{Secretaryto the Governme} '^{Revenue (CT) Department'} iiIt. ti'i5r";sani^{Set,etaiiit a'itoinst'Hvderabad'relangana} 2. ir,ffi^{"il'BxJxsffiffi iiuii"ytrlixrufl'['l3i')31'%"*'n1'} ntu c""' 3. ilijiisltl"-.^{T"{sl -:ffi :',,?iffi 3,xi'i:1' ffgp"} Telangana.

¶55

¶56

4 The Cornmgrcial Tax Officer, Nacharam Circle, Saroornagar Drvrsron, Near AJanta Gate, Exhtbition Grounds, M.J Road, Nampally, Hyderabad -

¶57

50000 i. Tetanoana.

¶58

One CC to SriG Narendra Chettv, Advocate [OPUC] 6. One CC to Sri K Raji Reddy, Seriior S.C. for Commeicial Tax [OPUC] 7. Two CCs to GP for Commercial Tax, High Court for the State of Telangana at Hyderabad. [OUT]

¶59

IALONG^{W|TH A COPY OF THE ORDER} Dr.05t07t2022^{tN W.p NO.7B93OF 2020} AND BATCHI

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Two CD^CoPies

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One Spare Copy

CHR GJP ,--

I \

HIGH COURT DATED:1210712022

¶68

),'
I $1 i:r I'r?

¶69

COMMON ORDER

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W.P.Nos.21412 ot 2020 & 10031 of 2021

¶71

ALLOWING THE WRIT PETITIONS WITHOUT COSTS

¶72

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M/s. Viswakirthi Conveyors Pvt. Ltd. v. The State of Telangana and 2 others

Case brief

What is this about?

What did the court decide?

M/s. Viswakirthi Conveyors Pvt. Ltd. v. The State of Telangana and 2 others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

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