Case Law Details

Case Name : Spacewood Furnishers Pvt. Ltd. State of Telangana (Telangana High Court)
Appeal Number : WP. No. 9165 of 2021
Date of Judgement/Order : 09/04/2021
Related Assessment Year :

Spacewood Furnishers Pvt. Ltd. State of Telangana (Telangana High Court)

In the last one year, we have noticed at least 200 cases where the Assessing Officer under the CST Act has not issued show cause notice or if they issued notice, they have not considered the response of the assessees, and mechanically confirmed the demand mentioned in the show-cause notice and we have had to set aside all such orders and make a remand to the Assessing Officers.

In spite of specific warning by this Court to the Standing Counsel for the Commercial Taxes Department that this kind of conduct by the Assessing Officers will not be countenanced, it appears that she same thing is continuing obviously because this Court has taken a lenient view in the earlier matters and had avoided imposing costs.

This Court is being burdened time-and-again to decide the correctness of such assessment orders being passed by the Assessing Officers in violation of principles of natural justice.

In this view of the matter, the Writ Petition is allowed; the impugned assessment order is set aside; the matter is remitted back to the 2nd respondent for fresh consideration; 2nd respondent is directed to provide personal hearing to the petitioner and consider the response of the petitioner along with supporting material, and then pass a reasoned order in accordance with law and communicate the same to the petitioner. The 2nd respondent shall also pay costs of Rs. 10,000/- (Rupees Ten thousand) personally to the petitioner within a period of four (04) weeks.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

1. In this Writ Petition, petitioner has assailed the Assessment Order No.41055 dt.31.03.2021 passed by the 2nd respondent under the Central Sales Tax Act, 1956 for the period April, 2016 to March, 2017.

2. Counsel for the petitioner contends that the 2nd respondent had issued a show-cause notice on 05.07.2019, to which the petitioner had filed a detailed response dt.29.03.202 1 making a specific request for personal hearing, but the impugned assessment order has been passed without considering the response of the petitioner dt.29.03.202 1 and without affording a personal hearing.

3. Sri Sai Krishna, Assistant Government Pleader, attached to the office of the Advocate General, appearing for respondents is not able to show from the impugned order that the contents of the response dt.29.03.2021 filed by the petitioner, have been considered in the impugned assessment order passed by the 2nd respondent, and that personal hearing was afforded to the petitioner.

4. In the last one year, we have noticed at least 200 cases where the Assessing Officer under the CST Act has not issued show cause notice or if they issued notice, they have not considered the response of the assessees, and mechanically confirmed the demand mentioned in the show-cause notice and we have had to set aside all such orders and make a remand to the Assessing Officers.

5. In spite of specific warning by this Court to the Standing Counsel for the Commercial Taxes Department that this kind of conduct by the Assessing Officers will not be countenanced, it appears that she same thing is continuing obviously because this Court has taken a lenient view in the earlier matters and had avoided imposing costs.

6. This Court is being burdened time-and-again to decide the correctness of such assessment orders being passed by the Assessing Officers in violation of principles of natural justice.

7. In this view of the matter, the Writ Petition is allowed; the impugned assessment order AO.No.4 1055 dt.3 1.03.2021 passed by the 2nd respondent is set aside; the matter is remitted back to the 2nd respondent for fresh consideration; 2nd respondent is directed to provide personal hearing to the petitioner and consider the response of the petitioner dt.29.03.202 1 along with supporting material, and then pass a reasoned order in accordance with law and communicate the same to the petitioner. The 2nd respondent shall also pay costs of Rs. 10,000/- (Rupees Ten thousand) personally to the petitioner within a period of four (04) weeks.

8. Communicate copy of this order to the Commissioner of Commercial Taxes, State of Telangana, and also to the 1st respondent in the Writ Petition.

Consequently, miscellaneous petitions pending, if any, shall stand closed.

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