M/S. R S Arora Rubber Corporation vs. Assistant Commissioner (St) - Telangana High Court, 13 February 2024

Cause title — parties, addresses and appearances

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI WRIT PETITION NO:76 36 0F 2021 [ 337e ] .....PETITIONER of the witho u t Between: M/s. R S Arora Rubber Corporalron, A proprietary concern having its office at .l . 1st Floor. Raniquni, secundrab'ad.f-rvoeraSiJ"- 6bt6oe''n"pr"senled by its proprietor YJ.TTE::.:fl:: Sinsh Arora, S/o:-M;h;;er"s;nn Arora, ased 54 years, R/o AND constitution of rndia, viorative of principres of naturar justice and tota[y 1 2 Assistant Commissioner /STJ, Ramgopalpet_Ranigunj Circle, Begumpet Division, 6-3-78s, 3d Ftoor, i;rr;i p;;iii;, Iil"#ti Hyderabad - 500016. I!: 9j:,g of Telangana, Rep. by principat Secretary, Revenue (ST), Secretariat, Hyderabad. .....RESPONDENTS Petition Under Articre 226 0f rhe constitution of rndia praying that in the circumstances stated in the affidavit fired therewith, the High court may be pleased to issue a writ, direction or order more particurarry in the nature of a writ of mandamus decraring the arrears of sares tax notice dated 0g-03-2021 issued by the Respondent No.1 , in so far as it demands an amount of Rs. t 0,0+, t qSl_ tor the period Aprir 2018 to March 2019 and Rs.7,69,590r for the period Aprir 2019 to March 2020 and arso the disalowance of input tax credit to the petitioner based on GSTR 24 as being void, illegal, violative of Article .14 jurisdiction. ,t' l.A.NO:1 OF 2021 Petition Under Section 15'1 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend lhe arrears of sales tax notice dated 08-03-2021 issued by the Respondent No.1, in so far as it demands an amount of Rs.10,04,145/- for the period April 2018 to lt4arch 2019 and Rs.7,69,5901 for the perrod Aprit 20i9 to March 2020. Counsel for the Petitioner : SRI NAGA DEEPAK, ADVOCATE FOR M/s. R.S.ASSOCIATES Counsel for the Respondents : SRI BHASKAR REDDY

The Court made the following ORDER

THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE N.TUKARAMJI l[rRIT PETITION No.7636 OF 2O2L ORDER:1per Hon'ble Si Justice P.SAM I(OSHY) Heard Sri Naga Deepak, learned counsel representing M/s.R.S. Associates, learned counsel for the petitioner and Sri Bhaskar Reddy, learned counsel appearing for the respondents.

The challenge in the present Writ Petition is to the notice, dated OB.O3 .2021 (Anne:rure-P. 1 ) so far as the collection of arrears of sales tax for the period April, 2018 to March, 2019 and April 2019 to March, 2O2O, tt:e period that is reflected at S1.No.3 and 4 of the impugned order.

Learned counsel for the petitioner makes a statement that so far as the period mentioned at Sl.No. 1 i.e., April, 2Ol3 to March, 2016 and the period mentioned at Sl-No.2 i.e,. April, 2015 to March,2016 is not being challenged by the petitioner in this Writ Petition and that the petitioner has already taken appropriate recourse before the competent authority and the same is still pending. 'l

I 2 PSK,Jdt I\IT&J W.P.No.7636 o.f 2O21

The primary contention of the petitioner is that though for the period 2019-2O2O, a show cause notice was issued to the petitioner to which the petitioner has already submitted its reply and while the show cause proceedings were still pending, the respondents have straight away issued the impugned notice (Annexure-P. 1) demanding for payment of arrears of sales tax. According to the petitioner, before issuance of the impugned notice, no hna-l order as such has been passed on the show cause proceedings that were drawn up. These proceedings, according to the petitioner, are still pending consideration before the authorities concerned.

So far as the period April,2018 to March,2019 is concerned, the learned counsel for the petitioner submits that in this case, even a show cause notice has not been duly served upon the petitioner, therefore, there has been no occasion for the petitioner to either file a reply, contest the case or submit its explanation in respect of its defense.

We have entertained this Writ Petition as earlv as on 12.12.2023 and directed the respondents to seek

3 PSK,J & NIR,J W.P.No.7636 of 2O21 instructions in the matter aiong with extension of interim direction that was granted to the petitioner'

Today, the learned counsel appearing for the Department refers to the counter and submits that it seems to be a case where a show cause notice appears to be issued to the petitioner and the petitioner has submitted its reply to the same' However' there has been no orders passed on the same and the impugned notice seems to be issued straight away' 'I'he impugned notice is nothing but a demand notice for payment of arrears of sales tax to be made by the petitioner and no final order seems to be passed on the shou' cause notice that was issued at the first instance. The impugned demand notice also does not reflec[ any reasons or grounds which were taken by the petitioner in its reply to the show cause notice' as such' it is a non-speaking and un-reasoned order'

Given the above submissions made by the learned counsel for the Department' where there appears to have been no conclusion arrived at on the show cause proceedings that were initiated' the impugned demand

4 PSK,J d6 IV?R.J W.P.No.7636 of 2Oi1 notice also lacking reasons and justifications for issuance of t he no tice for demand of arrears, we are of the considered oprnion that the impugned notice to the aforesaid extent is unsustainable and deserves to be set- aside. Accordingly, the impugned notice is set_aside so far as the amount determined for the period April, 201g to Marcir, 20I9 and Aprll, 2019 to March, 2O2O rsconcerned. T'he matter stands remitted bacl< to respondent No. 1 for passing orders afresh on the show cause proceedings that were clrau.n up and to which the pefitioner has submitted its reply, by duly taking into consideration the contentions that hzrve been raised therein.

Since the demand notice has been issued without passing of a final order on the show cause proceeclings ar_rd stnce the matter stands remitted back to respondent No.1, expected that respondent No. 1 shall it is glve an opportunity of personal passing fresh orders. specilic hearing to the petitioner belore The respondent No.I shall issue r-rotice intimating the date with reasonable time gap to the petitioner to enter appearance and take ! I & proper

ffi / . .'. t/ 5 To SA GJP PSK,J & NTR,J W.P.No.7636 of 2O21 defence available to them. Further, it is also made clear that this Court has not expressed a.y opinion on the merits of the case, the authority concerned would be free to take appropriate decision strictly in accordance with 1aw

10.

Accordingly, this Writ Petition stands allowed. There shall be no order as to costs. Consequently, miscellaneous petitions pending, if any shall stand closed. . P.Ch. NAGABHUSHAMBA ASSISTANT REGISTRAR //// sEcTto OFFICER

The Assistant Commissioner (ST), Ramgopalpet-Ranigunj Circle, Begumpet Division, 6-3-789, 3rd Floor, Pavani Prestige, Ameerpet, Hyderabad - 500016

The Principal Secretary, Revenue (ST), Secretariat, State of Telangana at Hyderabad-

One CC to M/s R.S.Associates, [OPUC]

One CC to Sri Bhaskar Reddy, Advocate (OPUC)

Two CD Copies & <v

HIGH COURT DATED:1310212024 ORDER WP.No.7636 of 2021 ALLOWING THE W.P WITHOUT COSTS. J k * l ltE s14 14- 2 E uts ?nt $( o <+ D€ * 'qsarcHE! *{.c c{ 03 68- z