Case Law Details
Harshit Construction Vs Joint Commissioner of Commercial Taxes Legal (Telangana High Court)
The show cause notice dated 08.07.2022 was received by the petitioner on 11.07.2022. It has been averred in paragraph 13 of the writ affidavit as well as discernable from the endorsement at page 27 of the paper book. Seven days from 11.07.2022 would mean 18.07.2022. However, before the period of seven days could expire and before the petitioner could file objection, 1st respondent passed the impugned order on 16.07.2022 affirming the addition proposed in the show cause notice.
When we queried Mr. K.Raji Reddy as to how an officer of the level of Joint Commissioner of Commercial Tax could commit such a mistake, explanation furnished is that the Joint Commissioner was under the impression that the period of seven days would commence from the date of show cause notice.
When the show cause notice itself clearly says that petitioner should file written statement within seven days of receipt of the notice, we fail to understand as to how 1st respondent could have arrived at such a conclusion.
We are not satisfied with such an explanation. However, in the present proceeding we are not inclined to delve into this aspect of the matter but in an appropriate case we may consider awarding exemplary costs if we are of the view that such mistakes are not bona fide.
In view of above, we set aside the revisional order dated 16.07.2022 and remand the matter back to the 1st respondent. Petitioner shall submit written objection to the show cause notice dated 08.07.2022 within seven days from the date of receipt of a copy of this order whereafter 1st respondent shall pass fresh order in accordance with law after giving due opportunity of hearing to the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard Mr. S.R.R.Viswanath, learned counsel for the petitioner and Mr. K.Raji Reddy, learned Senior Standing Counsel, Commercial Tax for the respondents.
2. Considering the nature of grievance expressed and the order that is proposed to be passed, we are of the view that issuance of formal notice is not required as the case can be disposed of at the admission stage itself.
3. By filing this petition under Article 226 of the Constitution of India, petitioner has assailed legality and validity of the revisional order dated 16.07.2022 passed by the 1st respondent for the assessment period 2014-15 to 2017-18 (upto June, 2017).
4. The challenge has been made on the ground that the revisional authority had granted seven days’ time to the petitioner to file objection to the notice proposing revision but without exhaustion of the aforesaid period, the revisional order has been passed. As a result, petitioner could not file objection. Thus there is violation of the principles of natural justice.
5. Petitioner is a registered dealer under the Telangana Value Added Tax Act, 2005 (briefly referred to hereinafter as ‘the VAT Act’). It is engaged in the business of real estate development and construction. For the assessment period 01.04.2014 to 30.06.2017, petitioner was assessed by the Commercial Tax Officer (respondent No.3) on 28.07.2018. As per the order of assessment, amount liable to be paid by the petitioner for the aforesaid assessment period was assessed at nil.
6. Show cause notice dated 08.07.2022 was issued by the 1st respondent to the petitioner stating that an amount of Rs.29,01,500.00 was the short-levy of Value Added Tax (VAT). Therefore, the assessment order was found to be prejudicial to the interest of the Revenue. Accordingly, it was proposed to revise the assessment in exercise of powers under Section 32(2) of the VAT Act for the aforesaid tax period. Petitioner was called upon to file written objection within seven days of receipt of the show cause notice.
7. The show cause notice dated 08.07.2022 was received by the petitioner on 11.07.2022. It has been averred in paragraph 13 of the writ affidavit as well as discernable from the endorsement at page 27 of the paper book. Seven days from 11.07.2022 would mean 18.07.2022. However, before the period of seven days could expire and before the petitioner could file objection, 1st respondent passed the impugned order on 16.07.2022 affirming the addition proposed in the show cause notice.
8. When the 1st respondent had granted seven days’ time to the petitioner to submit written objection on the proposed revision of assessment, he ought to have waited till expiry of the aforesaid period. Without the aforesaid period being completed, 1st respondent hastily passed the order dated 16.07.2022 thereby pre-empting the petitioner from filing written objection.
9. When we queried Mr. K.Raji Reddy as to how an officer of the level of Joint Commissioner of Commercial Tax could commit such a mistake, explanation furnished is that the Joint Commissioner was under the impression that the period of seven days would commence from the date of show cause notice.
10. When the show cause notice itself clearly says that petitioner should file written statement within seven days of receipt of the notice, we fail to understand as to how 1st respondent could have arrived at such a conclusion.
11. We are not satisfied with such an explanation. However, in the present proceeding we are not inclined to delve into this aspect of the matter but in an appropriate case we may consider awarding exemplary costs if we are of the view that such mistakes are not bona fide.
12. In view of above, we set aside the revisional order dated 16.07.2022 and remand the matter back to the 1st respondent. Petitioner shall submit written objection to the show cause notice dated 08.07.2022 within seven days from the date of receipt of a copy of this order whereafter 1st respondent shall pass fresh order in accordance with law after giving due opportunity of hearing to the petitioner.
13. Writ Petition is according allowed. However, there shall be no order as to costs.
14. As a sequel, miscellaneous applications pending, if any, in the writ petition, shall stand closed.
