Andhra Pradesh High Court - Amravati
M/S Ess Gee Caterers vs The Commerical Tax Officer on 16 October, 2024
Author: R Raghunandan Rao
Bench: R Raghunandan Rao
APHC010651702009
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3488]
(Special Original Jurisdiction)
WEDNESDAY, THE SIXTEENTH DAY OF OCTOBER
TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE HARINATH.N
WRIT PETITION NO: 27279/2009
Between:
M/s Ess Gee Caterers ...PETITIONER
AND
The Commercial Tax Officer and Others ...RESPONDENT(S)
Counsel for the Petitioner:
1. VENKATRAM REDDY MANTUR
Counsel for the Respondent(S):
1. GP FOR COMMERCIAL TAX (AP)
The Court made the following order:(per Hon'ble Sri Justice R Raghunandan Rao)
The petitioner is a caterer, who had been supplying catering service and
house-keeping service to M/s.ONGC, under a catering agreement, dated
28.11.2007.
2. The 1st respondent had inspected and audited the books of
accounts of the petitioner for the period from 01.05.2008 to 31.07.2009 and
thereafter assessed the petitioner for the said period. The assessment order
passed by the 1st respondent, dated 12.10.2009, levied a tax of Rs.4,85,792/-.
This assessment order is said to have been on the basis of certain admissions
RRR, J & HN, J
made by Sri Jayakumar, who is said to be the Manager of the petitioner, apart
from being the Power of Attorney of the petitioner.
3. The petitioner, being aggrieved by the said order of assessment,
has approached this Court, by way of the present Writ Petition, contending
that the order of assessment suffers from various infirmities, both on merits as
well as the requirements of law. The petitioner contends that the 1st
respondent was not authorized either to audit the accounts of the petitioner or
to pass assessment orders raising tax demands against the petitioner. The
petitioner would also contend that the said assessment order had been
passed without issuing any show cause notice and without giving an
opportunity of hearing to the petitioner and the same violates principles of
natural justice, requiring this Court to intervene in the matter.
4. Certain objections on the merits of the case were also raised but,
this Court does not propose to go into those issues in as much as the question
of violation of principles of natural justice and the power and jurisdiction of the
1st respondent, to pass the assessment order, would be sufficient to dispose
of this Writ Petition.
5. The 1st respondent, in the counter affidavit filed by him, contends
that he has been given authorization to audit the accounts of the petitioner by
the Deputy Commissioner concerned and the same is sufficient to clothe him
with the jurisdiction to conduct an assessment of the turn-over of the petitioner
also. On the question of non-issuance of show cause notice, the 1st
respondent has taken the stand that Sri Jayakumar, who was authorized to
RRR, J & HN, J
represent the petitioner, had admitted the suppression of turn-overs etc. and
in view of such admissions, no further notice be given to the petitioner.
6. This Court, in the case of Sri Balaji Flour Mills vs. The
Commercial Tax Officer & Others1, had held that any officer who is not the
assessing authority of a dealer would require special authorization for auditing
the accounts of a dealer and a separate authorization for conducting
assessment proceedings. This Court had also held that in the absence of
separate authorizations, it would not be open to an authority, who had been
authorized to conduct audit of the books of dealer, to also pass an
assessment order.
7. Following the said Judgment, the assessment order passed by
the 1st respondent, dated 12.10.2009, is without jurisdiction and it is
accordingly, set aside. However, it would be open to the authorities to
undertake fresh assessment in accordance with law.
8. Accordingly, the present Writ Petition is allowed. There shall be
no order as to costs.
As a sequel, interlocutory applications pending, if any shall stand
closed.
_______________________
R RAGHUNANDAN RAO, J
______________
HARINATH.N, J
16.10.2024
MJA
(2011) 40 VST 150
RRR, J & HN, J
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE HARINATH.N
WRIT PETITION NO: 27279 of 2009
(per Hon'ble Sri Justice R Raghunandan Rao)
16.10.2024
MJA
