Cemfis INDIA Private Limited vs. The State Of Ap

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WP/13845/2024HC Andhra PradeshGSTCNR APHC01026751202409 July 2024Bench: R RAGHUNANDAN RAO,HARINATH.N7 pages
For Petitioner: SRI JYOTHI RATNA ANUMOLUFor Respondent: GP FOR COMMERCIAL TAX

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Cause title — parties, addresses and appearances
IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE TENTH DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 13845 OF 2024 Between: 1. Cemfis India Private Limited, Through Authorized Representative Having regd. office at: 4-46-11/8, F.No.-2/3, G.K. MansonsPedawaltair, Visakhapatnam-530017, Andhra Pradesh cemfisindia@gmail.com ...PETITIONER AND 1. The State of Andhra Pradesh, rep by its Principal Secretary, State Tax Department, Secretariat Buildings, Velagapudi, Amaravati The Additional Commissioner (ST), Appellate Authority, Vijayawada, NTR District, Andhra Pradesh 2. 3. The Assistant Commissioner (ST), Chinawaltair Circle, Visakhapatnam-I Division, Visakhapatnam Andhra Pradesh ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in .. ^ Jhe circumstances stated in the affidavit filed therewith, the High Court may a ' Jae.pleased to issue a Writ or and Order or Direction with more particularly ^ tpe nature of a Writ of Mandamus declaring the Order dated 26.10.2020 ' bearing Order No. ZH3710200D72470 included in Order dated 31.10.2020 (FORM GST DRC 07) bearing Reference No. ZD371020029748G passed by the Respondent No.3; and Order dated 12.02.2024 in Special Appeal No. GST/VSP-l/957/2023-24 passed in appeal by the Respondent No.2 illegal, arbitrary, unreasonable and violative of provisions of COST and APGST Act and Rules therein besides being violative of Article 14 and 21 of the Constitution of India and consequently set aside the same / as lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend Order dated 31.10.2020 (FORM GST DRC 07) bearing Reference No. ZD371020029748G passed by the Respondent No.3:and to grant the Petitioner an expeditious hearing pending disposal of the above Writ Petition Counsel for the Petitioner: SRI JYOTHI RATNA ANUMOLU ^ Counsel for the Respondents: GP FOR COMMERCIAL TAX .

The Court made the following Order

f ■■ APHC010267512024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3488] WEDNE AY, THE TENTH DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 13845/2024 Between: Cemfis India Private Limited ...PETITIONER AND ...RESPONDENT(S) The State Of Ap and Others Counsel for the Petitioner: 1.JYOTHI RATNAANUMOLU Counsel for the Respondent(S): 1.GP FOR COMMERCIAL TAX The Court made the following order: (perHon’ble Sri R Raghunandan Rao) The petitioner, who is a registered dealer under the Goods and Services Act, 2017, had delayed the filing of GSTR-3B return for the period 01.07.2017 to 31.01.2020. In view of the said delay, an amount of Rs. 12,56,895/- was computed as interest that needs to be paid on account of the delay in filing of the returns. The petitionerhad deposited the said amount towards interest tax liability. However, the 3’’'^ respondent again issued a notice dated 30.06.2020 calling for payment of the said amount. Thereafter, there were various

2 communications and interactions between the petitioner and the tax authorities wherein the petitioner stuck to his ground that the said interest payment had been made, while the tax authorities insisted on further payment of same amount again. The petitioner also contends that he had initially paid Rs.12,56,000/- against the demanded amount of Rs. 12,89,000/- and having realized that there was a shortfall in payment, had paid the remaining amount of Rs.32,588/- also. As the tax authorities were not adjusting the payments made by the petitioner earlier, the petitioner has moved the Appellate Forum for rectification and for reconciliation of the amount. However, this appeal also got dismissed on the ground of latches.

2.

Aggrieved by the same, the petitioner has approached this Court by way of the present Writ Petition, challenging the order dated 26.10.2020 bearing No.ZH3710200D72470 and the order dated 31.10.2020 bearing Reference No.ZD371020029748G apart from the order dated 12.02.2024 in Special Appeal No.GSTA/SP-l/957/2023-24.

3.4.

Heard Smt. Jyothiratna Anumolu, learned counsel for the petitioner and the Learned Government Pleader for Commercial Tax appearing for the respondents. Smt. Jyothiratna Anumolu, learned counsel for the petitioner would contend that the petitioner is being harassed despite the payments of interest claimed and the appellate authority ought not to have dismissed the appeal on the ground of latches as the petitioner had approached the tax 5. -1 3 authorities at the earliest and had been in communication with the authorities for a long period of time. A perusal of the documents produced by the petitioner along with the writ petition would show that there have been communications exchanged between the petitioner and the tax authorities in relation to the aforesaid payment.

6.

The Learned Government Pleader for Commercial Tax, on instructions, submits that the aforesaid amounts had been paid by the petitioner. However, certain amounts would have to be reconciled for which orders of penalty had already been passed.

7.

In view of the various factual issues that require to be gone into the matter, it would be appropriate to remand the matter back to the Assessing Authority for reconciliation of the amount as well as for determination of any other liability of the petitioner arising out of these transactions.

8.

Accordingly, the Assessing Authority order dated 26.10.2020 bearing No.ZH3710200D72470 included in order dated 31.10.2020 (Form GST DRC 07) bearing Reference No.ZD371020029748G apart from the order dated 12.02.2024 in Special Appeal No.GSTA/SP-l/957/2023-24 passed by the 2^^ respondent are set aside and the orders and the Special Appeal are remanded back to the 3'"'^ respondent for taking into account the payment of Rs. 12,89,484/- paid towards interest on delayed payment and delayed filing of returns and to determine whether this extinguishes the liability of the petitioner 9. /

4 or there is any further liability that arises. The said order shall be passed after hearing the petitioner. Accordingly, the Writ Petition is allowed. There shall be no order 10. as to costs. sequel, interlocutory applications pending, if any shall stand As a closed. J. SAROJA assistant registrar section officer / //// To 1. The State of Andhra Pradesh, Rep by its Principal Secretary, State Tax Department, Secretariat Buildings, Velagapudi, Ainaravati

2.

The Additional Commissioner (ST), Appellate Authority, Vijayawada, NTR District, Andhra Pradesh 3. . The Assistant Commissioner (ST), Chinawaltair Circle. Visakhapatnam-I Division, VisakhapatnamAndhra Pradesh

4.

One CC to Sri Jyothi Ratna Anumolu, Advocate [OPUC]

5.

Two CCs to GP for Commercial Tax, High Court Of Andhra Pradesh [OUT]

6.

Three CD Copies GN

HIGH COURT r .0 r f r DATED: 10/07/2024 ORDER 2" © 0 4 JAN 2025 <7 3: WP.No.13845 of 2024 Current Section rT- 1.1 ,1^ ■ -A-’C ALLOWING THE WRIT PETITION WITHOUT COSTS

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.