M/S.J.V.Industries, v. The Commercial Tax Officer,

THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN AND THE HON'BLE SRI JUSTICE M.SATYANARAYANA MURTHY WRIT PETITION NO.22489 OF 2016 ORDER: {Per the Hon'ble Sri Justice Ramesh Ranganathan} The proceedings under challenge in this Writ Petition is the assessment order passed in Form VAT 305 dated 10.06.2016 subjecting the petitioner to tax on goods which the petitioner claims are medical equipment. The assessing authority, however, treated these goods as liable to tax at 14 1⁄2%. It is the petitioner's case that, while the pre-assessment show cause notice dated 31.05.2016 was served on them on 14.06.2016, the impugned assessment order was passed even prior thereto on 10.06.2016.

When the matter came up earlier, Sri J.Anil Kumar, learned Special Standing Counsel for Commercial Taxes, sought time to obtain instructions. Today, the learned Special Standing Counsel would submit that the notice, sent to the petitioner by e-mail on 01.06.2016, was received by them. Sri Bhaskar Reddy Vemireddy, learned counsel for the petitioner, would point out that this mode of service is not prescribed under Rule 67 of the Andhra Pradesh Value Added Tax Rules; and a physical copy thereof was handed over to the petitioner only on 14.06.2016 without affording the petitioner an opportunity of being heard, and without providing them an opportunity of an oral hearing.

The urgency in passing the assessment order appears to be expiry of the limitation period prescribed for passing an assessment order, on the matter being remanded by the appellate Deputy Commissioner i.e., of three years on 11.06.2016. As Section 37 of the Andhra Pradesh Value Added Tax Act would enable the assessing authority to pass a fresh assessment order within three years from the date of the order passed by this Court

and, as the time granted to the petitioner to furnish reply to the show cause notice, even in terms of the notice sent by e-mail, is only three days, we consider it appropriate to set aside the impugned order and direct the respondents to grant the petitioner an opportunity of personal hearing and thereafter pass an assessment order afresh in accordance with law. Sri Bhaskar Reddy Vemireddy, learned counsel for the petitioner, would request two weeks' time to file their written objections. The respondent shall fix a date for personal hearing after two weeks from today, and pass a fresh assessment order at the earliest, and in any event within two (2) months from the date of receipt of a copy of this order.

The Writ Petition stands disposed of, accordingly. There shall be no order as to costs. Miscellaneous petitions, if any, pending shall stand closed.

______________________________ (RAMESH RANGANATHAN, J) ___________________________________ (M.SATYANARAYANA MURTHY, J) 18th July 2016 RRB