M/S Subhodaya Paper Products Pvt. ... vs The State Of Telangana And 2 Others
2022 Latest Caselaw 1619 Tel

           THE HON'BLE Dr. JUSTICE G. RADHA RANI

                      Writ Petition No.25827 of 2021
ORDER:

This writ petition is filed by the petitioner to issue a Writ of

Mandamus declaring the action of the respondents in not considering the

application of the petitioner for incentive to refund the sales tax that was

paid for the financial year 2019-20 first half, in accordance with

G.O.Ms.No.28, dated 28.11.2014 on the ground of not complying with the

query within 45 days that fell during Covid-19 pandemic, as illegal,

arbitrary and contrary to the judgment of the Hon'ble Apex Court in Suo

Motu W.P. (Civil) No.3 of 2020 and to set aside the auto rejection of the

petitioner's application for not replying to query within 45 days and to

direct the respondents to consider the application of the petitioner manually

and to refund the sales tax amount that was paid in the first half of the

financial year 2019-20 to the petitioner.

2. Heard the learned counsel for the petitioner and the learned

Government Pleader for Industries and Commerce.

3. Learned counsel for the petitioner submitted that the petitioner

firm would manufacture Corrugated Packaging boxes and commenced its

operation on 14.06.2017. The Government of Telangana in order to Dr.GRR,J

encourage the Micro, Small, Medium, Large and Mega Industries, extended

certain incentives under the new Industrial policy and issued G.O.Ms.

No.28, Industries and Commerce (IP & INF) Department, dated

29.11.2014. Under the said G.O. under 4.1.7., the petitioner firm was

entitled for 100% net VAT/CST or State Goods Service Tax (SGST) for a

period of 5 years from the date of commencement of commercial

production. The Industries covered under the said G.O. have to make an

application for claiming the incentives. For the purpose of claiming sales

tax incentives, the firms have to submit applications online with the

requisites at the end of the half financial year. The petitioner firm

submitted an application for the financial year 2019-20 by 31.03.2020 by

enclosing the Form-A. But, the Form-A was not signed by the Sales Tax

Authorities on 27.03.2020 as there was lockdown in the country from

22.03.2020. The Sales Tax office was under lockdown and the petitioner's

employees were also not attending the duties. In that situation, the

petitioner firm could not obtain the Sales Tax Form-A signed by the

concerned authorities. Though the petitioner firm was required to submit

the same within 45 days, could not comply with the query due to lockdown

and ongoing pandemic situation. On obtaining Form-A from the Sales Tax

authorities, the petitioner re-submitted the application with the compliance Dr.GRR,J

of the query on 19.01.2021, but the same was auto rejected on the ground

that the compliance of the query was not done within 45 days. The

petitioner firm again sent a written representation dated 03.05.2021 to the

2nd respondent through registered post, but there was no response till date.

The petitioner firm employed several workers and had to pay their salaries

and delayed EMIs to the loans obtained from the Banks. The operational

expenditure was high due to the pandemic situation. If the application of

the petitioner firm was not considered and if incentive was not given, they

would be put to irreparable loss and hardship and prayed to allow the

petition.

5. Learned Government Pleader for Industries and Commerce

submitted that it was computer format for making application for claim of

incentives and it would automatically reject if the conditions were not

complied with. The application was submitted in incomplete format

without uploading the Form-A duly signed by the authorities. But, the

learned Government Pleader admitted that no response was given by the 2nd

respondent to the written representation given by the petitioner firm on

03.05.2021 through registered post.

Dr.GRR,J

6. Hence, considering the situation of pandemic and that the entire

country was under complete lockdown from 22.03.2020 onwards and there

is no possibility of the petitioner firm to obtain signatures of the concerned

authorities within the prescribed time limit of 45 days, which was auto

rejected for not submitting the Form-A in complete shape, it is considered

fit to direct the respondents No.2 and 3 to re-examine the issue and to pass

appropriate orders in accordance with law without looking into the delay,

by taking into consideration the judgment of the Hon'ble Apex Court in

Suo Motu (Civil) W.P. No.3 of 2020, dated 08.03.2021.

7. With the above directions, the Writ Petition is disposed of.

No order as to costs.

Miscellaneous pending if any shall stand closed.

_____________________ Dr. G. RADHA RANI, J March 30, 2022 KTL