Raghavendra Construction Vs State of Telangana (Telangana High Court)
Held that If there is payment of tax under the composition scheme, question of regular assessment would not arise under Telangana Value Added Tax Act, 2005 (TVAT Act).
Facts-
The petitioner is a special class civil contractor registered with the Government of Telangana. It is carrying on the business of execution of civil work relating to construction of roads etc. Petitioner is a registered dealer with the respondent no. 2 under the Telangana Value Added Tax Act, 2005 as well as under the Goods and Services Tax (GST).
Petitioner had opted for composition of tax and therefore filed applications under Form VAT 250 on monthly basis covering the aforesaid assessment periods along with the returns filed under Form VAT 200. The petitioner received an urgent payment notice from the respondent no. 2. The petitioner accordingly contended that urgent payment notice issued by the respondent no. 2 is illegal and needs to be set aside.
Conclusion-
In the instant case there is no dispute that for the assessment periods under consideration petitioner had already paid tax under the composition scheme. Held that If there is payment of tax under the composition scheme, question of regular assessment would not arise.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
This order will dispose of both W.P.Nos.27866 of 2021 and 11006 of 2022.
2 We have heard Mr. D.Srinivas, learned senior counsel on behalf of M/s. Pillix Law Firm for the petitioner and Mr. K.Raji Reddy, learned senior standing counsel, Commercial Taxes, for the respondent.
3 In W.P.No.27866 of 2021, the prayer made is to declare the action of the second respondent i.e. Commercial Tax Officer, Bhongir Circle, Bhongir, in issuing the urgent payment notice dated 2007.2019 as illegal and consequently to set aside the same.
4 Petitioner in W.P.No.11006 of 2022 seeks a declaration that action of the second respondent in issuing garnishee notices dated 24.02.2022 to the fourth respondent i.e. Canara Bank, Malakpet Branch, Malakpet, Hyderabad and to others as illegal and consequently to set aside the same.
5 According to the petitioner it is a special class civil contractor registered with the Government of Telangana. It is carrying on the business of execution of civil work relating to construction of roads etc. Petitioner is a registered dealer with respondent No.2 under the Telangana Value Added Tax Act, 2005 (TVAT Act) as well as under the Goods and Services Tax (GST).
6 It is stated that for the assessment periods from the year 2014 till the year 2017, petitioner had filed monthly returns in Form VAT 200 by duly attaching Form VAT 501 along with certification of tax collection at source. It is stated that petitioner had opted for composition of tax and therefore filed applications under Form VAT 250 on monthly basis covering the aforesaid assessment periods along with the returns filed under Form VAT 200.
7 According to the petitioner it was surprised when it received notice dated 20.07.2019. It was an urgent payment notice issued by respondent No.2. Respondent No.2 stated that assessments under the VAT Act was conducted by the Assistant Commissioner (CT) LTU, Nalgonda Division, Nalgonda as per assessment order Nos.35305, 35309 and 35310, all dated 02.07.2019, following which a total amount of Rs.6,52,46,001-00 was outstanding against the petitioner. Petitioner was called upon to make the payment within seven days of receipt of the said notice. The urgent payment notice dated 20.07.2019 reads as under:
GOVERNMENT OF TELANGANA
COMMERCIAL TAXES DEPARTMENT
Office of the
Commercial Tax Officer,
Bhongir Circle, Bhongir.
TIN.36122086628
Dated: 20.07.2019
URGENT PAYMENT NOTICE
Please take notice that according to this office records the VAT assessment was conducted by Assistant Commissioner (CT), LTU, Nalgonda Division, Nalgaonda as per A.O. No.35305, 35309, 35310, dated 02.07.2019 following the arrears are outstanding against you.
