Delhi High Court
Shri Uday Jain Prop. M/S Dhoomimal ... vs Commissioner, Trade And Taxes & ... on 23 July, 2020
$~1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P. (C) 4411/2020 & CM APPL.15889/2020
SHRI UDAY JAIN PROP.
M/S DHOOMIMAL GALLERY ..... Petitioner
Through: Mr. Puneet Bhatnagar, Advocate and
Ms. Richa S. Bhatnagar, Advocate.
versus
COMMISSIONER, TRADE AND TAXES & ORS. ..... Respondents
Through: Mr. Satyakam, Additional Standing
Counsel for R-1.
Mr. Rahul Chitnis, Chief Standing
Counsel with Mr. Raghav Sharma,
Advocate for R-3.
% Date of Decision: 23rd July, 2020
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE SANJEEV NARULA
JUDGMENT
MANMOHAN, J: (Oral)
1. The petition has been heard by way of video conferencing.
2. Present writ petition has been filed seeking a direction to the respondent
No.1 to allow the amendment sought by the petitioner in its return of second
quarter for the financial year 2015-16 vide application dated 16th June, 2019
and to quash the notice dated 24th June, 2020 issued by a private party-
respondent No.2 in pursuance to another notice dated 16 th June, 2020 issued to
it by respondent No.3 for recovery of alleged tax of Rs.29,79,163/-.
3. Mr. Puneet Bhatnagar, learned counsel for petitioner states that return of
three unsold paintings by petitioner's Consignment Agent (respondent No.2)
were inadvertently shown as Inter-State Purchase without Form in Form-16 in
the second Quarter of financial year 2015-16 instead of being shown as Stock
Transfer Inward against F-Form. He further states that after the mistake was
detected, the petitioner filed for amendment of said Annexure-2A of Quarter 2
of financial year 2015-16 on 16th June, 2019, which though received by
respondent No. 1 on 21st June, 2019, has not been decided till date.
4. He states that the petitioner along with its aforesaid application dated
16th June, 2019 had annexed various documents along with the request i.e. copy
of the Stock Transfer Note Voucher number STL : DMG/2014-15/005 dated
03rd March, 2015, for Rs. 2,58,68,500/- (Two crore Fifty Eight Lakh Sixty
Eight Thousand Five Hundred only) raised by the petitioner along with other
relevant documents. According to him, these documents show that the
aforesaid mistake inadvertently occurred while filing the Returns of Quarter-2
of Financial Year 2015-16 and no actual loss would accrue to the Department
i.e. Respondent No. 1 if the said bonafide mistake is allowed to be amended
and the records are corrected, so that no penalty is imposed upon the petitioner.
5. Learned counsel for the petitioner emphasises that in similar matters,
this Court has already allowed the amendment applications of similar
applicants on similar grounds. In support of his contention he relies upon the
orders passed by this Court in Ingram Micro India Private Limited Vs.
Commissioner, Department of Trade and Taxes & Anr., W.P.(C) No. 8272 of
2015 and H.M. Sales Corporation Vs. Commissioner of Trade and Taxes,
W.P. (C) No. 4816 of 2017.
6. Learned counsel for petitioner submits that while respondent No.1 is
neither allowing nor rejecting the petitioner's amendment application,
respondent No.2 has raised demand for payment of tax along with interest and
penalty vide its notice dated 24th June, 2020 on the basis of notice dated 16th
June, 2020 issued to it by respondent No.3. He contends that if the petitioner's
application dated 16th June, 2019 for amendment is allowed, the demands
raised under notices dated 24th June, 2020 and 16th June, 2020 would become
infructuous.
7. On the other hand, Mr. Satyakam, learned Additional Standing counsel
for respondent No. 1 submits that the decision of this Court in M/s. Ingram
Micro India Pvt. Ltd. v. Commissioner DT&T & Anr., W.P. (C) No.
8272/2015 is under challenge before the Supreme Court in Civil Appeal No.
4573/2017 and the Supreme Court has granted leave in the said matter vide
order dated 27th March, 2017. He also points out that this Court rendered
decisions in several similar cases, including W.P. (C) No. 2633/2017, M/s.
Indian Oil Corporation Ltd. v. Commissioner, VAT decided on 11th April,
2017, which have been appealed against in the Supreme Court and the Supreme
Court has stayed the operation of the judgment of this Court.
8. Mr. Satyakam points out that in the light of the interim orders passed by
the Supreme Court, while deciding another writ petition i.e. Ingram Micro
India Ltd. v. Commissioner, Department of Trade and Taxes and Anr., W.P.
(C) No. 8435/2018, decided on 04th December, 2018, this Court issued
directions for issuance of segregated and separate 'C' Forms. However, the
directions issued by this Court were suspended till the Civil Appeals before the
Supreme Court were pending.
9. Same is the position in the decision of this Court in Allied Automation
Engineering Services Pvt. Ltd. v. Commissioner of Trade and Taxes, W.P.
(C) No. 9474/2018 decided on 10th September, 2018, in M/s. Samsung C&T
Pvt. Ltd. v. The Commissioner, Trade & Taxes, & Anr., W.P. (C) No.
4092/2017 decided on 15th February, 2019, in E.I. Dupont India Private
Limited v. Commissioner, VAT, Delhi & Anr, C.M. No. 47356/2018 in W.P.
(C) No. 4952/2017 decided on 27th February, 2019 and C G Power And
Industrial Solutions Limited vs Department of Trade and Taxes & Ors., W.P.
(C) No. 3024/2019 decided on 15th January, 2020.
10. Mr. Satyakam contends that this Court has recently in similar matters
been either adjourning matters or is allowing the petition but suspending the
relief till the civil appeals pending in the Supreme Court are decided.
11. This Court is of the view that no useful purpose would be served by
keeping the petition pending. Consequently, it directs respondent no. 1 to allow
the amendment sought by the petitioner in its return of 2nd Quarter for the
Financial Year 2015-16 vide application dated 16th June, 2019. However, this
direction shall remain suspended till the Civil Appeals pending before the
Supreme Court, taken note of hereinabove, are decided and this direction shall
abide by the decision that the Supreme Court renders.
12. With the aforesaid direction, present writ petition and pending
application stand disposed of.
13. The order be uploaded on the website forthwith. Copy of the order be
also forwarded to the learned counsel through e-mail.
MANMOHAN, J
SANJEEV NARULA, J
JULY 23, 2020
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