M/S Harshita Enterprises vs. The State Of Andhra Pradesh
Held
The Court held that the impugned demand notice dated 20.08.2024, issued by the 3rd respondent (District Mines and Geology Officer), was not proper and was liable to be set aside. The reasoning was that the demand notice was issued without passing any orders on the explanation submitted by the petitioner on 30.06.2024. The Court found that the notice was issued in a hurried manner, without affording any opportunity of hearing to the petitioner, thereby violating the principles of natural justice. Consequently, the Writ Petition was allowed, and the impugned demand notice was set aside. The matter was remanded to the 3rd respondent to consider the petitioner's explanation dated 30.06.2024 and pass appropriate orders in accordance with law within three months from the date of receipt of the order. No costs were awarded.
Facts
M/s Harshita Enterprises, a GST holder dealing in minerals as a mediator, filed a writ petition challenging a show cause notice and consequential demand notice issued by the District Mines and Geology Officer, SPSR Nellore. The show cause notice, dated 21.05.2024 and received on 06.06.2024, alleged illegal transportation of minerals to China via Chennai port from SPSR Nellore District, proposing a penalty of Rs.12,68,352/-. The petitioner claims the notice was issued without opportunity or supporting documents. The petitioner submitted an explanation on 30.06.2024, acknowledged on 12.07.2024. Subsequently, on 20.08.2024, a demand notice was issued without considering the petitioner's explanation, stating no reply was given and alleging misuse of transit forms. The petitioner contended these actions were arbitrary and illegal.
Key Issues
1. Whether the demand notice dated 20.08.2024 issued by the District Mines and Geology Officer is arbitrary, predetermined, bad in law, illegal, unjust, against principles of natural justice, and unconstitutional, thereby warranting its setting aside? Petitioner's arguments: The petitioner argued that the demand notice was issued arbitrarily and illegally without considering their detailed explanation submitted on 30.06.2024. They contended that the authorities issued the demand notice in a hurried manner, violating principles of natural justice by not affording an opportunity of hearing and by failing to consider the explanation provided. The petitioner also highlighted that the show cause notice itself was issued without proper opportunity or supporting documents. Revenue's arguments: The judgment does not record specific arguments made by the learned Assistant Government Pleader for Mines and Geology on behalf of the respondents.
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Cause title — parties, addresses and appearances
ORDER:
The Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:
“…..declaring the show cause notice No.647/Q/2024-24 dated 21.05.2024 (received on 06.06.2024) and Consequential Demand Notice No.647/Q/2024-24, dated 20.08.2024 issued by the District Mines and Geology Officer, SPSR Nellore, as arbitrary, predetermined, bad in law, illegal, unjust, against principles of natural justice and unconstitutional and to set aside the same, and to pass such other order or orders…..”
2
Facts of the case, in brief, are that the petitioner is a GST holder and has been dealing with the minerals as a mediat
The judgment continues below.
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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.