M/S. Nucon Pneumatics Private Limited v. Assistant Commissioner (St) And 2 Others

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original J urisdiction) IVONDAY, THE FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRI JUSTICE M.S.RAMACHANDRA RAO AND THE HON'BLE SRI JUSTICE T.VINOD KUMAR WRIT PETITION NO. 18s8 0F 2021 Between:

M/s. Nucon Pneumatics Private Limitedl Rep by its commercial Manager, Mr. KNV Rama Swamy, Plot No.5, Phase -1, lDA, pasliamylaram, Medak OistriCt-S0"Z 3Oi. ...PETITIONER AND Assistant Commilsloner LST), Sangare4dy Circle-1, Sangareddy. Commercial Tax Officer, Ramayanpet Ro;d, Medak. -S-!1t9..oI Telangana,_ Rep. by its Principal Secretary to Government, Revenue (CT-ll) Department, Secretariat, Hydera6ad.

RESPONDENTS Petltion under Article 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue a writ of Mandamus or any other appropriate writ or order or direction to set - aside the impugned order of the 2nd Respondent passed in Ao No.37020 dated 271312020 and consequently selaside the notice issued to the petitioner's bank for the assessment year 20'15-16 under the central sales Tax Act, 19s6 as being illegal, contrary to record and in violation of principles of natural justice and consequenfly direct the 2nd Respondent to re-assess the petitioner for the assessment year 201516, after giving proper show cause notice and an opportunity to file objections and a personal hearing and thereafter pass assessment order in accordance with law.

lA NO: 1 OF 2021 Petition under section 1 51 cPc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to grant stay of all further proceeding pursuant to the impugned order of the 2nd Respondent daled 271312020 forthe assessment yeat 2015-i6 underthe CSTAct, 1956, pending disposal of the writ Petition as otherwise the petitioner will be put to severe loss and hardship.

Counsel for the Petitioner: M/s. K. UMA Counsel for the Respondents: SRI M. GOVIND REDDY, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAXES The Court made the following: ORDER

THE HON'BLE SRI JUSTICE M.S. RAMACHANDRA RAO, AND THE HON'BLE SRI .IUSTICE T. VINOD KUMAR .

WRIT PETITION NO,1858 OF 2O21 ORDER : /per Hon'ble Sri Justice T. Vinod Kumar) In this Writ Petition, the petitioner has assailed the correctness of Assessment Order in A.O. No. 37020 dated 27.O3.2O2O passed by the 2"a respondent under the provisions of Central Sales Tax Act, 1956 (for short 'the CST Act') for the Assessment Year 2015- 16.

2.

It is contended by the petitioner that the 2nd respondent authority has passed the impugned order without issuing any notice or affording the petitioner with an opportunity of personal hearing. It is also contended that the impugned order was passed by the 2nd respondent authority during the lockdown period announced by both the Central and State Governments. Learned Counsel for the petitioner also contends that, though the impugned order of assessment records that a reminder notice dated 16. 11.2019 and final notice dated 06.03.2O20 as having been issued, no such notice was served on the petitioner. It is also submitted that the petitioner became aware of the impugned order only upon the respondent authority initiating proceedings under Section 29 of the Telangana VAT Act, 2005 and issuing notice to the petitioner banker on O2.Ol .

2021 . Learned Counsel for the petitioner further submits that the impugned order has been passed by the 2od respondent authority without considering the C, H and I declaration forms and other documentary evidence filed under thg,cover of letter dated 72.O9.

and thus, the order of assessment is vitiated for non-consideration of material on record.

3.

Sri M. Govind Reddy, learned Special Standing Counsel for Commercial Taxes, appearing for the respondent does not dispute the fact of the petitioner not being afforded an opportunity of hearing or the final notice dated 06.03.2O2O having been served on the petitioner. He is also unabie to explain the reason as to why the 2nd respondent did not consider the declaration Forms C, H and I and other documentary evidence filed by the petitioner and available on record, while passing the impugned Order of Assessment.

4.

In view of the above, this Court is satisfied that apart from violation of principles of natural justice causing prejudice to the petitioner, the impugned order is also vitiated for nonconsideration of the material available on record. 5.

Accordingly, the Writ Petition is allowed; the impugned order bearing A.O. No.37020 dated 27.O3.2O2O passed by the 2na respondent against the petitioner for the period 2015-16 under CST Act is set aside; the matter is remitted back to the 2"d respondent for fresh consideration; the 2"d respondent shall serve a fresh show cause notice on the petitioner indicating therein the turnover proposed to be assessed to tax and also the tax proposed to be levied thereon, in accordance with Rule 64(1)(b) of the Telangana VAT Rules, 2005; the petitioner is granted six weeks time from the date of receipt of such show cause notice to file the objections thereto, along with supporting material and also any additional declaration forms received subsequently; personal

hearing shall be afforded to the petitioner by the 2nd respondent; and the 2nd respondent thereafter sha pass a reasoned order in accordance with law and communicate the same to the petitioner. No order as to costs.

As a sequel thereto, the miscellaneous petitions pending, if any, shall stand closed.

SD/.L.LAKSHMI BABU ASSISTANT REGISTRAR I L,.

SECTION OFFICER To, i/TRUE COPYi/ 1 . The Assistant Commissioner (ST), Sangareddy Circle-|, Sangareddy.

2. The Commercial Tax Officer, Ramayanpet Road, Medak.

3. The Principal Secretary to Government, Revenue (CT-ll) Department, State of Telangana, Secretariat, Hyderabad.

4. One CC to M/s. K. Uma, Advocate [OPUC]

5. Two CCs to Sri M. Govind Reddy, Special Standing Counsel for Commercial Taxes, High Court for the State of Telangana at Hyderabad. [OUT]

6. Two CD Copies.

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HIGH COURT DATED:01 10212021 14 l'4:

S e '(, o z 15 FEB 2021 * L)F5n

ORDER

WP.No.1858 of 2021 ALLOWING THE WRIT PETITION WITHOUT COSTS @ i