Dismissed

M/s International Construction Co. v. The Assistant Commissioner(St)

Telangana HC7 Apr 2022WP/15779/2022

Case brief

AI extract

What is this about?

Writ petition challenging dismissal of tax appeal and attachment of bank account dismissed. Court held alternative remedy of appeal to Appellate Tribunal under TVAT Act must be exhausted before approaching High Court.

What did the court decide?

Petitioner directed to prefer appeal to Appellate Tribunal under Section 33 of TVAT Act; writ petition disposed of.

M/s International Construction Co. Vs The Assistant… — Property and Title | Telangana HC (2022)

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

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THURSDAY ,THE SEVENTH DAY OF APRIL TWO THOUSAND AND TWENTY TWO

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PRESENT

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THE HONOURABLE SRI JUSTICE UJJAL BHUYAN

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THE HONOURABLE MRS JUSTICE SUREPALLI NANDA

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WRIT PETITION NO: 15779 oF 2022

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Between:

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M/s lnternational Construction Co, Flat^No.301 , Pavani^{ShivArcadeBalajinagar,} Kukatpally, Hyderabad Represented by its Partner Firoz^Karimi

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...PETITIONER

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AND

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1 The Assistant Commissioner(ST),^{Hydernagar-l Circle, Hyderabad,} Telangana.

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Appellate^{Joint Commissioner (ST), Hyderabad RuralDivision' Hyderabad'}

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The State^{of Telangana, Represented by-its PrincipalSecretary' Commercial} - Taxes Department, Secretariat' HyderaDao'

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...RESPONDENTS

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Petition^{underArticle 226 of the Constltutionof lndia praying that in the} circumstances^{stated in the affidavitfiled therewith'the High Court may be} pleased to^{issuewrit or order or direction one in the nature of writ of mandamus} declaring^{the action of the 2nd respondentdismissing the appealADC order 487} d1.9.3.2021^{filed against the assessmentorder of CTO' Hydernagar Circle} levying^{entrytax for the year 2013-'14of Rs'4'60'5971on the purchaseof goods} from^{other states against statutory forms'withoutconsideringthe material} showing^{that the goods are used as inputsin the execution of works contract as} the^{provisionsof the TelanganaTax on Entry of} illegal,^{arbitrarr, uno} 'glt't Goods^{into Local AreasAct' 2001'}

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lA NO: 1 OF 2022

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in supporl of the petition, the High Court may be pleased to direct the 1"t respondent to lift the attachment of the petitioners bank account vide the l"trespondent notice to bank in FORM GST DRC -j3 dated 11.03.2022 and direct the lstrespondent not to take any coercive steps in pursuance to the orders of the 2'd respondent, in ADC order No.4B7 dated 9-3-2022 otherwise the petitioner will be put to irreparable loss and injury.

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Counset for the petitioner : SRl. N KODANDARAMA RAO Counset for the Respondents: AGp FOR COMMERCIAL TAX The Court made the following: ORDER

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HON'BLE MR. JUSTICE UJJAL BTITIYAN

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AND

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HON'BLE MRS. JUSTICE SUREPALLI^NANDA W.P.No.15 9 of 2022

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Order:

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(Per t'1o,1'bLe Sn Justice Ujjol Bhuyan)

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Heard Mr. Kodanda Rama^{Rao, learned counsel for the} petitioner.

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Petitioner is aggrieved by^{order dated09.O3.2021,passed} by respondent No.2 as the^{appellateauthority,dismissingthe} appeal bearing Appeal^{No. R/89/20 19-2020-VAT, filed by the} petitioner.

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Petitioner/Ms. International^{Construction Company was a} dealer under^{the Telangana Tax on Entry of Goodsinto Local} Areas Act,^{2001 (for short 'the 2OO1 Act')'For the assessment} period 20^{13- 2014, rt was subjected to assessmentculminating} in order^{dated 31' 10'2018' passed byrespondent} No.1/AssistantCommissioner(ST),Hydernagar-1Circle, Hyderabad,^{imposing tax of Rs'4'60'597'00'}

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Aggrieved^{by the aforesaid order' petitionerpreferred} appeal^{before respondent No'2' By the impugned orderdated} Og.O3.2O2l ,^{the appeal has been dismissed'}

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)

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Aggrieved thereby, the present writ petition^{has been filed}

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According to learned counsel for the^petitioner, respondent No.2 as the appellate authority had failed to exercise the jurisdiction vested in it while dismissing the appeal of the petitioner. The relevant legal provisions were not properly appreciated as a result of which, the appeilate authority misdirected itself resulting in the impugned order.

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On a query by the Court as to why petitioner has not availed the alternative remedy of preferring further appeal to the Appellate Tribuna_l under Section 33 of the Telangana Value Added Tax Act, 2005 (for short the TVAT Act,), learned counsel for the petitioner submits that petitioner had not only deposited the prerequisite amount necessary for admission of the appeai but, additionally deposited 3s% of the disputed tax amount for which initial stay was granted by the appellate authority. Consequent upon dismissal of the appeal, bank account of the petitioner has been attached.

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B. On the other hald, Mr. L.Venkateshwara Rao, learned Standing Counsel for the Commercial Tax Department, submits that petitioner has the right of appeal under Section 33 of the

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TVAT Act. He further^{pointsout that as per the decisionof the} Supreme Court,^{because of the COVID-19 pandemic' the period} of limitation has^{been extendedand would now start running} from 01.03.2O22.^{Therefore, petitioner wouldbe well within its} time of sixty days,^{as prescribedunder Section 33 of the TVAT} Act, to prefer the^aPPeal.

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Law on this^{point is well settled' Thoughpresence of} alternative remedy^{is no bar to exerciseof jurisdiction under} I 1 Article 226 of^{the Constitutionof India, there is self-imposed} limitation by the^{constitutional courts on exercisingof such} jurisdiction. Only in^{cases where there is violationof the} principles of natural^{justice;where there is infringement of} fundamental^{rights; or where theuires of a statute is under} challenge, the^{High Court would stillexercise itswrit} jurisdiction not withstanding^{availabilityof alternative remedy'}

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i0. That being the^{position, we are not inclined to entertain} the writ Petition.

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1 I . Consequently,^{we relegatethe petitioner to the forum of} /the Appeilate Tribunal.^{petitionermay ventilate its grievance by} filing appeal^{before the AppellateTribunalunder Section33 of}

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the TVAT Act and if such appeal is filed, the same shall be

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considered by the Apperlate ?ribunar in accordance with raw.

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