Telangana High Court
M/S.Sree Krishna Enterprises vs Commercial Tax Officer And 3 Others on 15 June, 2022
Author: Surepalli Nanda
Bench: Surepalli Nanda
THE HONOURABLE SRI JUSTICE UJJAL BHUYAN
AND
THE HONOURABLE MRS JUSTICE SUREPALLI NANDA
WRIT PETITION No.25517 of 2022
ORDER:(Per Hon'ble Sri Justice Ujjal Bhuyan) Heard Mr. C.V.Narasimham, learned counsel appearing on behalf of Ms. Y.Siri Reddy, learned counsel for the petitioner and Mr. K.Raji Reddy, learned Senior Standing Counsel for Commercial Tax for the respondents.
2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 25.01.2020 passed by the 2nd respondent dismissing the appeal filed by the petitioner.
3. Petitioner is a registered dealer under the Telangana Value Added Tax Act, 2005 (briefly referred to hereinafter as the 'VAT Act') engaged in the business of trading in Tungsten Carbie Tips and Rod Drill Bit Tips (Buttons) mostly imported from China and selling to domestic clients. For the assessment period 2009-10 to 2012-13, 2 UB, J & SN, J W.P.No.25517 of 2022 petitioner was assessed by the assessing authority i.e., respondent No.1 vide order dated 21.12.2017. By the aforesaid order, turnover of the petitioner was assessed at Rs.39,88,54,406.00, on which the tax effect was quantified at Rs.1,78,31,589.00.
4. Aggrieved by the aforesaid order dated 21.12.2017, petitioner preferred appeal before the 2nd respondent under Section 31 of the VAT Act. By the impugned order, appeal filed by the petitioner was dismissed.
5. We have perused the appellate order dated 25.01.2020. On a perusal of the aforesaid order, we find that 2nd respondent extracted the grounds of appeal filed by the petitioner. Thereafter the 2nd respondent extracted the observations made by the assessing authority. Further appellate authority noted that show cause notice was issued to the petitioner, to which petitioner had filed objection which was rejected by the assessing authority. Thereafter, the appeal was dismissed in the following manner:
3 UB, J & SN, J W.P.No.25517 of 2022 "In the present appeal also, except raising the contentions, which were already considered by the Assessing Authority, the appellant failed to substantiate such contentions with supporting documentary evidence so as to contradict the findings recorded by the Assessing Authority. Further, the Assessing Authority before passing the impugned orders, not only issued a show cause notice rebutting its findings for proposing to levy of tax involving the disputed tax herein, but also considered the objections filed by the appellant and confirmed the levy of tax as proposed in the said notice.
Thus, the claims now made by the appellant, in the grounds of appeal and their reiteration by their Authorised Representative, during the course of personal hearing, are found to be unsubstantiated. Consequently, the appeal fails and is accordingly dismissed."
6. We are afraid the approach of the appellate authority does not confirm to the standards expected of an appellate authority. Even while affirming the order of the assessing authority, the order must indicate application of mind by the appellate authority. The appellate authority must apply its mind to the contentions raised by the appellant and decide the same on the anvil of the findings rendered by the assessing authority. Unfortunately the same is lacking in the present case.
4 UB, J & SN, J W.P.No.25517 of 2022
7. We accordingly set aside the impugned order dated 25.01.2020 and remand the matter back to the 2nd respondent for a fresh decision on the appeal in accordance with law. Needless to say petitioner shall be afforded reasonable opportunity of hearing by the 2nd respondent while deciding the appeal. Let the petitioner appear before the 2ndrespondent on 06.07.2022 at 11.A.M., whereafter 2nd respondent shall hear and decide the appeal within a period of 60 days thereafter.
8. Writ Petition is accordingly disposed of. However, there shall be no order as to costs.
9. As a sequel, miscellaneous applications pending, if any, in this Writ Petition, shall stand closed.
______________________ UJJAL BHUYAN,J _________________________ SUREPALLI NANDA, J Date: 15.06.2022 KL