M/s Solpro Automation Systems Vs Commercial Tax… — Writ and Judicial Review | Telangana HC (2025)

M/s Solpro Automation Systems Vs Commercial Tax… — Writ and Judicial Review | Telangana HC (2025)

What the court decided

AI extract

Outcome

Revised assessment order dated 27.02.2021 set aside; proper authority directed to rehear the petitioner and pass a fresh order in accordance with law; petitioner to appear before the proper authority on 23.04.2025 at 11:30 A.M.; miscellaneous petitions pending, if any, stood closed; disposed of without expressing any opinion on merits; no order as to costs.

Issue for consideration

Whether the revised assessment order dated 27.02.2021 passed by Respondent No. 1 for the year 2015-16 under the CST Act, 1956, levying Central Sales Tax at the higher rate of 5 per cent on inter-State sales turnover covered by C declaration forms (Rs. 65,22,762/-) and E-I declaration forms (Rs. 5,67,125/-), is arbitrary, illegal and contrary to law, warranting its set-aside.

Court's answer

In view of the consensus arrived at between the parties during hearing, the revised assessment order dated 27.02.2021 is set aside.

Ratio / Principle

The proper authority shall rehear the petitioner and pass a fresh order in accordance with law.

Key takeaways

The petitioner agreed to appear before the proper authority on 23.04.2025 at 11:30 A.M.ratio¶40
The writ petition is disposed of without expressing any opinion on the merits of the case; merits expressly left open.obiter¶44

Detailed headnote1 paragraphs

High Court for the State of Telangana at Hyderabad (Special Original Jurisdiction), 15.04.2025: W.P. No. 3784 of 2021 - M/s Solpro Automation Systems v. Commercial Tax Officer, Nacharam I Circle & Ors. (bench: Hon'ble Acting Chief Justice Sujoy Paul and Hon'ble Smt. Justice Renuka Yara; order per the Acting Chief Justice). Petitioner, citing Article 226 of the Constitution, had prayed for a mandamus declaring the revised assessment order dt. 27.02.2021 of Respondent No. 1 for the year 2015-16 under the CST Act, 1956 - demanding Central Sales Tax at the higher rate of 5 per cent on inter-State sales turnover covered by C declaration forms of Rs. 65,22,762/- and E-I declaration forms of Rs. 5,67,125/- - arbitrary, illegal and contrary to law, and seeking its set-aside; related interim applications concerned stay of collection (IA No. 1 of 2021) and a garnishee notice dt. 06.02.2021 apparently issued by Respondent No. 2 (IA No. 2 of 2021). At final hearing held with consent, parties reached a consensus that Respondent No. 1 had not considered the petitioner's stand/response in toto while passing the revised assessment order dated 27.02.2021. In view thereof, THIS COURT SET ASIDE the revised assessment order dated 27.02.2021 and DIRECTED the proper authority to rehear the petitioner and pass a fresh order in accordance with law, petitioner to appear on 23.04.2025 at 11:30 A.M. Writ petition DISPOSED OF WITHOUT EXPRESSING ANY OPINION ON MERITS; pending miscellaneous petitions closed; no order as to costs.

t³⁴⁴⁶ l

HIGH COURT^{FOR THE STATE OF TELANGANA} AT HYDERABAD (SPecial Original Jurisdiction)

TUESDAY,THE^{FIFTEENTH DAY OF APRIL} TWO THOUSAND^{AND TWENTYFIVE}

PRESENT

THE HONOURABLE^{THE ACTINGCHIEFJUSTICE SUJOYPAUL} AND THE HONOURABLE^{SMT JUSTICE RENUKAYARA}

WRIT PETITION^N o^{:3784 OF 2021}

Between:

M/s Solpro Automation^{Systems,205, Narmada.A.rcade'SnehplriColony'} j Hi,.il,rt";. ;"fii;.o-|'Mi-Auiniit r.rlJr,jii. u-jin^{rr,tatriva, noio, s/o Ringa MrI ompra'kash Malviva' resident Reddv.(Telangana),Rep} .^{bv itsor} Hyderabad.

...PETITIONER

AND

1 . Commercial^{Tax Officer and 4 Others,Ng.ch.arap I Circle'3rdFloor' M-4} ' eb"i, Mi""ranjan Complex, Nampally, Hyderabad'

Asst. Commissioner^{of StateTax, Nacharam I Circle' 3rd Floor' M-4Block'}

iu;;rran1;n Complex' Nampally, Hyderabad'

Branch Manaqer,^{HDFCBankLtd.,Plot No'131'Narmada Arcade' Snehpuri} Colony, Nachiram,^{Hyderabad.500076'}

4.CommissionerofCommercialTaxes,Govt'ofTelangana'lst.Floor',' C6;m[aia;er of Commercial Taxes Building, Nampally' Hyderabad'

The Principal Secretary^{to Revenue Department' Governmentof Telangana'} Secretariai,^HYderabad.

...RESPONDENTS

PetitionunderArticle226ollheConstitutionoflndiaprayingthatinthe circumstances^{stated in tfre atfiOavitfiled therewith' the High Court may be} pleased,,Forthereasonsstatedabove,itisprayedthattheHon'bleCourtmaybe to isiue a writ oi^{Mandamusor any otherappropriatewrit'. order-or} ;i;ffi direction declaring^{the revisedaisessment order dt. 27102t2021passed by the 1st} Respondent for^{the u"."..rlnt year2015--16.under the CST Act' 1956 in} demanding Central^{Srr.s iarlii,'Z,zs,Z+Ot-in levying higher rate.of} .central salestax@5TopercentontheinterstatesalesturnovercoveredbyCdeclaration forms of Rs.65,22,762t-^{anA-E-t declarationforms for Rs' 5'67'125i- submittedon} o4logt2o2o under^{the csr nct, rgso,is quite arbitrary, illegal, c-ontrary to law and} consequenfly^{set aside tn. |."ui!"d ,l.essmentorderdt.27 to2t2o21, as violative of}

lli,lfl^{ii::'. .l;,|Yii,,JX'l,%?,;#[],:Jf.';j:j!7";, .,pr",in g rc dea, with the} Hon'bre court may d,:em rit ,no p.opu,. ini,fi;J#:fl:::"Jrr,?,".:;r:.",, ". ti i.

[i'fi#i,B']?TBi'}.,iiicourt^{order dated} 13.12.2023 Vide rA.r,o. I oF 2023

IANo: 10 F 2021

a te d n 3: :Irllil !rxi:".;,^{:;:f :, f I} iIfi JJ:l; :'_,:i e ff^j r,n : "=,s, :s["..il'ff stay of collection i;:,:l;tli:#ri,"t']H$5i,:'#ffi of di;putr ffi

IANo: 20F 2021

Petition under S _.c tne'anioavlt- iid;:; ; ;j.""; ]i i*?ff:l:?n[lj,T^,1" ",rcumsta r ces stated in :y"tf::-d^{the garnishee notrcedt.06/02} t2o2lissuert'P.| .99T^{mav be pt"ri"o} to ;i""iffil?#"i:.,",iji".:[,:,::",^{o,nr"l in-]tt,'ffi!?v tne 2ndresp<'ndentto the} 1:"":Tent".;;ii^{ji;5ir,,5;r?is: jt;i^,"%q:T",",SJ:!!::,,1fi ,j"flT} year 2o15_16 under the osr Act, penj,.s li,orJr,"i;f::i:?:,il,,,ir1;;;;.rr"rt

Counsel for the petitioner: SRl. TEJPRAKASH TOSHNIWAL

FsH"#Lt;; rffespordent^Nos.1,2,4&5: sRt swARoop ooRtLLA spL. cp

The Cou( made the foll,rwing: ORDER

\ t

/

THE HON'BLE^{THE ACTING CHIEF.'USTICESUJOY PAUL}

AND

THE HON'BLE SMT.^{JUSTICE RENUKA YARA}

IITRIT PETITION^{No.3784 of 2O2L}

ORDER:^{(Per the Hon'bletLrc Acting Chief JusticeSujogPaul)}

Sri Tejprakash^{Toshniwal, learned counsel for the petitioner} and Sri Swaroop^{Oorilla, learned SpecialGovernment Pleader for} State Tax, for^{respondentNos.1, 2,4 and 5'}

)

With the consent,^{finallYheard'}

I

During the course^{of hearing, learned counsel for the parties} reached to a consensus.^{It is agreedthat while passing the l} revised assessment^{orderd.ated 27.o2'2o2|,respondentNo.1 has} not considered^{the stand/response of the petitioner in toto and} therefore, the^{said revisedassessmentorder dated 27 'O2 '2021} may be set aside.^{The proper authoritymay be directed to rehear} the petitioner^{and pass a freshorder'}

4 The petitioner^{agreed to appear before the proper authority} on23.04.2025 at^{11:30 A.M.}

2

In view of the consensus arrived at, the revised ilssessment order dated 27 o2.2o2l is set aside. The proper authorit5r shall rehear the petit oner as per its convenience and pass a fresh order in accordance u ir h law.

The writ petition is disposed of accordingly without

expressing a,y' rroinion on merits of the case. No order ris to costs.

Miscellaleous petitions pending, if any, sha11 stanl closed.

To,

SD/-P. CH. NAGABHUSHAMBA //TRUE COPYII ..q5^{PUTY REGISTRAR} \, \ SECTION OFFICER ,) ! The Comme rcial Tax Officer, Nacharam I Circle, 3rd Floor, l/l-4 Block, Manoranjan Complex, Nampally, Hyderabad.

t)

Asst- Commissioner of State Tax, Nacharam I Circle, 3rd Floor, M-4 Block, Manoranjan Complex, Nampally, Hyderabad.

3 Commissiorer of Commercial Taxes, Govt. of Telangana, lst Floor, Commissiorer of Commercial Taxes Building, Namp"ally, ifyteraOad.

4 The Principe I Secretary to Revenue Department, Government of Telangana, Secretarial, !yderabati.

E one cc to rlRl. TEJPRAKASH TOSHNTWAL Advocate lopuc]

r) T_wo CCs to t3p 56q STATE TAX ,High Court for the State of Telangana. tourl

7 Two CD CoF,ies

KKS LS

I w

HIGH COUR'I'

DATED:15104,12025

)

ORDER

WP.No.3784 of 2021

{re d 14 ,6.
.) l-
t,
24 APn il6
i..-,'<'
r, J.t
- \ .ci ..n

DISPOSING TI{E WRIT PETITION WITHOUT CO:STS

4\ a{