M/S. Sri Sai Traders vs. The Assistant Commissioner (State Taxes) Eluru Circle
Held
The Court allowed the Writ Petition, setting aside the impugned assessment order dated 24.09.2019. The petitioner was granted liberty to file its objections/explanation within two weeks of receiving the order. The respondents were directed to verify these objections and pass appropriate orders in accordance with the law, after providing the petitioner an opportunity of hearing. The petitioner was permitted to raise all contentions raised in the writ petition during this process. No coercive action was to be taken against the petitioner until this exercise was completed. The Court clarified that if the petitioner failed to avail this opportunity within the stipulated period, the benefit of the order would not apply, and the respondents could proceed as per law. The ratio decidendi is that procedural lapses due to bona fide misunderstanding can be condoned by granting an opportunity to be heard, especially when the merits of the case are yet to be examined. No issue was expressly left undecided.
Facts
The petitioner, a mill, challenged an assessment order dated 24.09.2019 passed by the primary authority under the Andhra Pradesh Goods and Services Tax Act. The assessment order levied GST on custom milling charges. The petitioner received a show cause notice but did not file objections, mistakenly believing its association had done so. The petitioner raised several contentions in its writ petition. The High Court, to facilitate the petitioner raising its objections on merits, decided to allow the petitioner to file its explanations.
Key Issues
1. Whether the petitioner should be permitted to file its objections/explanation belatedly, despite having failed to do so within the prescribed time, in light of the circumstances presented. Petitioner's contention: The petitioner argued that it did not file objections due to a misunderstanding, believing its association had submitted them. It sought an opportunity to present its case on merits. Revenue's contention: The judgment does not record any specific contention from the revenue or state regarding the petitioner's failure to file objections or whether they opposed the petitioner's request to file them belatedly. The court proceeded to allow the petition based on the petitioner's explanation.
Sections Cited
Andhra Pradesh Goods and Services Tax Act
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE RAKESH KUMAR AND THE HON’BLE SRI JUSTICE A.V. SESHA SAI
WRIT PETITION No.19943 of 2019
ORDER: (Per Hon’ble Sri Justice A.V. Sesha Sai)
Heard learned counsel for the petitioner and learned Government Pleader for Commercial Taxes.
This matter arises under the Andhra Pradesh Goods and Services Tax Act. In this Writ Petition, challenge is to the order of assessment passed by the primary authority. By way of the impugned order, the authorities have levied G.S.T. on custom milling charges. A reading of the affidavit filed in support of the Writ Petition reveals that though the petitioner-Mill received show cause notice, it did not file objections under the impression that its association might have filed the explanations/objections, opposing the levy. Though a number of other contentions have been raised in the Writ Petition, this Court, in order to put a quietus for the issue and to enable the petitioner to raise its objections for consideration of the authorities and to invite orders on merits, deems it appropriate to permit the petitioner to file its explanations.
For the aforesaid reasons, the Writ Petition is
The judgment continues below.
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