WP/25956/2008 of M/s.Taher ALi Industries and Project (P) Ltd Vs The Commerical Tax Officer on 26 December 2008

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD(Special Original Jurisdiction)

FRIDAY, THE TWENTY SIXTH DAY OF DECEMBERTWO THOUSAND AND EIGHTPRESENT

THE HON'BLE MR JUSTICE GODA RAGHURAM

and

THE HON'BLE MR JUSTICE SANJAY KUMAR

WRIT PETITION No.25956 of 2008

Between:

M/s.Taher ALi Industries and Project (P) Ltd 6-3-1089/1/1 BlockNo.102,103,301 Pavani Avenue Rajbhavan Road Somajiguda Hyderabad rep.by its Director M.Rehman S/o. Taher Ali Hyderabad District

..... PETITIONER

AND

1 The Commerical Tax Officer Sanathanagar Circle Mayur KushalTowers 6th FloorTowers 6th Floor Hyderabad 2 The Authorised Signatory ICICI Bank Ltd Corporate InstitutionalBanking DivisionBanking Division ICICI Bank Towers Level-I Begumpet Hyderabad 3 General Manager Hyderabad Metro Water Supply and Sewerage Board Khairatabad Hyderabad

.....RESPONDENTS

Petition under Article 226 of the constitution of India praying thatin the circumstances stated in the Affidavit filed herein the High Courtmay be pleased to issue an appropriate writ order or direction moreparticularly one in the nature of writ of Mandamus declaring the action ofthe part of the 1st respondent in issuing garnishee notices under Section29 of the Andhra Pradesh Value Added Tax 2005 on 11-11-2006 to the2nd &3rd respondents detecting payments of the amounts mentioned inthe notice without setting the claim of the petitioner made on 06-11-2007as further reinforced in return for March 2008 in from VAT 200 showingthe refund of the tax filed on 15-04-2008 and even after lapse of 1 yearas also without serving a copy on the petitioner towards the recovery ofthe taxes penalty disputed in the appeals pending on the file of theappellate authorities as illegal arbitrary improper unfair and contrary toprinciples of natural justice as also contrary to provisions of Section 38of the Andhra Pradesh Value Added Tax act 2005 and consequentlydirect the 1st respondent to settle the payment of the refund amounts due to the petitioner along with interest as provided in Section 38 of theact and directing the 1st respondent not to initiate any coercive action forrecovery of the disputed amounts pending settlement of the claim of thepetitioner for refund under the act and grant such other reief or reliefs Counsel for the Petitioner:MR.M.V.J.K.KUMAR

Counsel for the Respondent No.: MR.A.V.KRISHNA KAUNDINYA(SPL.SC FOR CT)

The Court made the following :

THE HON'BLE MR JUSTICE GODA RAGHURAMand THE HON'BLE MR JUSTICE SANJAY KUMAR

WRIT PETITION No.25956 of 2008

ORDER:(per the Hon’ble Sri Justice Goda Raghuram)

The essential grievance in this writ petition is that the 1[st]respondent has issued notices to respondents 2 and 3 under Section 29of the Andhra Pradesh Value Added Tax Act, 2005, by the letter, dated23-10-2008, restraining these respondents from operating the accountsof the petitioner-assessee to the extent of the liability indicated in thenotices; while failing to finalise the assessments under the said Act, forthe years 2005-06, 2006-07 and 2007-08, wherein the petitioner claimsthat it is entitled to refund of a total amount of Rs.5,57,27,292/-, in thecontext of the total tax liability of the petitioner for the assessment years1998-99 to 2004-05 (inclusive) being Rs.1,37,07,146/-.

Conclusion

In response to the allegations in the writ petition, the 1[st]respondent has filed a counter-affidavit clearly asserting that in respectof the returns filed by the petitioner for the years 2005-06, 2006-07 and2007-08, wherein the claim of refund of an amount of Rs.5,57,27,292/- isasserted, the answering respondent had issued notices on 29-10-2007and 14-11-2007 calling upon the petitioner to file objections along withdocumentary evidence; the petitioner filed objections on 07-11-2007 and24-11-2007 but failed to produce the relevant records; and the petitionerwas again addressed by a notice, dated 13-08-2007 to produce thedocuments for enabling finalisation of the assessments. The petitionerfailed to produce the documents.

In the facts and circumstances of the case and in view of theaverments made by the learned counsel for the petitioner, the petitioneris granted three days time from the date of receipt of a copy of this orderto furnish any documents or material that the petitioner desires, to the 1[st]

respondent. On receipt of any such documents, the 1[st] respondent shallwithin a period of ten days thereafter pass orders of assessments for theyears 2005-06 to 2007-08 on the basis of the material available onrecord or on the basis of his best judgment, as the case may be.

Accordingly, the writ petition is disposed of at the stage ofadmission. There shall be no order as to costs.

Date: 26-12-2008Note:Issue C.C. in three days (B/o) Prv ____________________GODA RAGHURAM, J__________________SANJAY KUMAR, J

To

// TRUE COPY //

..... REGISTRARSECTION OFFICER

1.2CCs to2.2CD copies

Form-NIC-OGS/WP{BMR}