HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO
AND
HONOURABLE SRI JUSTICE T.AMARNATH GOUD
WRIT PETITION No.23980 of 2020
ORDER: (Per Hon'ble Sri Justice M.S. Ramachandra Rao)
In this Writ Petition, the petitioner assails the assessment order
AO No.44815 dt.29-03-2020 passed by the 1st respondent under
Central Sales Tax Act, 1956 (for short 'the Act') for the period April, 2015 to March, 2016.
2. Petitioner contends that a show cause notice had been sent by e.mail on 04-06-2019 to the petitioner by 1st respondent, which is not a valid mode of service under Rule 64(1)(b) of the Telangana VAT Rules, 2005; petitioner could not have filed a reply thereto as he was busy with the tax audit under the Income Tax Act; petitioner started collecting information to substantiate the claim for exemption in the month of February, 2020; but even before the petitioner could submit the documentary evidence, the impugned order has been passed on the pretext that the assessment would get time barred; and that even the said order was communicated to the petitioner through e.mail, which is not a permissible mode of service under Rule 64(1)(b) of the Telangana VAT Rules, 2005.
3. Petitioner contends that a garnishee notice was received from the 1st respondent on 21-11-2020 by the banker of the petitioner for ::2::
recovery of a sum of Rs.38,84,264/- for the period 2015-16 under the Act.
4. Petitioner contends that petitioner is in possession of certain 'H' form declarations and it approached the territorial Deputy Commissioner to accept the same as per the judgment in Godrej Agrovet Limited1, but the latter refused to accept the same.
5. According to the petitioner, signed copy of the order was not communicated to the petitioner till 16-12-2020, though in the meantime attachment notice dt.21-11-2020 had been revoked by the 1st respondent.
6. Petitioner contends that without serving pre-assessment show cause notice as per the provisions of the Telangana VAT Rules, the 1st respondent could not have passed the impugned order.
7. Petitioner also contends that petitioner had not filed any response on 22-11-2019 as is alleged in the impugned order; that petitioner was also not afforded a personal hearing; and no final show cause notice dt.06-03-2020 was served on petitioner by the 1st respondent.
8. These facts are not disputed by Sri M.Govind Reddy, learned Special Counsel for Commercial Taxes appearing for respondents. 1 41 APSTJ 92 ::3::
9. We are satisfied that in the facts and circumstances of the case, there has been a violation of principles of natural justice causing grave prejudice to the petitioner.
10. Therefore, the Writ Petitioner is allowed; the Assessment Order AO No.44815 dt.29-03-2020 passed by 1st respondent is set aside; the matter is remitted back to the 1st respondent for fresh consideration; the 1st respondent is directed to issue show cause notice to the petitioner indicating the turnover proposed to be taxed under the Act and also the tax proposed to be levied thereon in accordance with Rule 64(1)(b) of the Telangana VAT Rules, 2005; petitioner is granted six (06) weeks time from the date of receipt of such show cause to file objections along with supporting material; a personal hearing shall be provided to the petitioner; and then a reasoned order be passed by 1st respondent in accordance with law and be communicated to the petitioner. No costs.
11. Consequently, miscellaneous petitions, pending if any, shall stand closed.
______________________________ M.S. RAMACHANDRA RAO, J ________________________ T.AMARNATH GOUD, J Date: 22-01-2021 Vsv