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Kerala High Court

Valamangalam Supari Traders vs Assistant Commissioner Of State Tax on 15 October, 2018

Author: Dama Seshadri Naidu

Bench: Dama Seshadri Naidu

                 IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                  PRESENT

              THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU

       MONDAY,THE 15TH DAY OF OCTOBER 2018 / 23RD ASWINA, 1940

                          WP(C).No. 31822 of 2018

PETITIONER:

                VALAMANGALAM SUPARI TRADERS
                TRIPPANACHI PO,MALAPPURAM 673641
                REPRESENTED BY P.MOHAMMED SHA, MANAGING PARTNER

                BY ADVS.
                SRI.P.RAGHUNATH
                SRI.PREMJIT NAGENDRAN

RESPONDENTS:
       1        ASSISTANT COMMISSIONER OF STATE TAX
                STATE GST DEPARTMENT KERALA ,SPECIAL CIRCLE
                MALAPPURAM 676505

      2         DEPUTY COMMISSIONER,
                COMMERCIAL TAXES, MALAPPURAM-676505.

      3         THE COMMISSIONER
                STATE GOODS AND SERVICE TAX DEPARTMENT,
                THIRUVANANTHAPURAM-695001.

      4         SECRETARY
                TAXES DEPARTMENT GOVERNMENT OF KERALA SECRETARIAT,
                THIRUVANANTHAPURAM-695001.

      5         CENTRAL BOARD OF EXCISE & CUSTOMS,
                DEPARTMENT OF REVENUE, MINISTRY OF FINANCE GOVT OF
                INDIA, NEW DELHI 110001.

                BY ADV. SRI.R.HARISHANKAR, SC, CENTRAL BOARD OF EXCISE
                & AMP; CUSTOMS

OTHER PRESENT:
              GP. M.M. JASMINE


THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION              ON
15.10.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C).No. 31822 of 2018                        2




                                          JUDGMENT

The petitioner, an assessee under the Central Sales Tax Act, filed returns for the assessment years 2011-12 to 2015-16. Though they were accepted and were acted upon, the 2 nd respondent invoked suo motu powers and cancelled the returns on the allegation that the petitioner produced bogus C-Forms. Aggrieved, the petitioner filed revision before the 3 rd respondent.

2. When the revision was pending, the 1st respondent issued the Exts.P1 to P5 pre-assessment notices, questioning which the petitioner filed W.P.(C)No.34277/2017. This Court stayed all further proceedings until the revisional authority would decide the petitioner's revision.

3. Now, the petitioner has been faced with a fresh set of Exts.P12 to P16 assessment orders. Ventilating its grievance that it has not been heard before the 1st respondent could pass those orders, the petitioner has filed this Writ Petition.

4. The petitioner's counsel strenuously contends that even before the petitioner could have the revisional order served on him, the 1st respondent passed the impugned assessment orders-- and without hearing him, at that. WP(C).No. 31822 of 2018 3

5. In response, the Government Pleader submits that acting on the findings in revision, the 1st respondent passed the Exts.P12 to P16 assessment orders. She nevertheless agrees that the petitioner was not heard.

6. Under these circumstances, I reckon the impugned order suffers from the vice of violating the principals of natural justice.

As a result, I set aside the Exts.P12 to P16 and remand the matter to the 1st respondent, who will hear the petitioner and pass orders afresh. It is open for the 1st respondent to put the petitioner on notice and complete the proceedings expeditiously. Since the petitioner in this Writ Petition has raised certain other issues including the vires of the authority to pass the impugned assessment orders, I leave them open.

Sd/-

DAMA SESHADRI NAIDU JUDGE WP(C).No. 31822 of 2018 4 APPENDIX PETITIONER'S EXHIBITS:

EXHIBIT P1 PHOTOCOPY OF PROPOSAL NOTICE DT.07/10/2017 UNDER CST ACT FOR 2011.13 EXHIBIT P2 PHOTOCOPY OF PROPOSAL NOTICE DT.07/10/2017 UNDER CST ACT FOR 2012.13 EXHIBIT P3 PHOTOCOPY OF PROPOSAL NOTICE DT.07/10/2017 UNDER CST ACT FOR 2013.14 EXHIBIT P4 PHOTOCOPY OF PROPOSAL NOTICE DT.07/10/2017 UNDER CST ACT FOR 2014.15 EXHIBIT P5 PHOTOCOPY OF PROPOSAL NOTICE DT.07/10/2017 UNDER CST ACT FOR 2015.16 EXHIBIT P6 PHOTOCOPY OF THE LETTER DATED 21/10/2017 FOR COPIES OF DOCUMENTS.
EXHIBIT P7 PHOTOCOPY OF LETTER FROM FIRST RESPONDENT UNDER RTI ACT.
EXHIBIT P8 PHOTOCOPY OF LIST OF 'C' FORMS FOUND 'BOGUS' SUPPLIED UNDER RTI ACT.
EXHIBIT P9 LIST OF BOGUS 'C' FORMS IN THE CSE OF MALABAR TRADING COMPANY, KASARAGOD. EXHIBIT P10 COPY OF APPLICATION UNDER RTI ACT FILED BY MALABAR TRADING COMPANY.
EXHIBIT P11 PHOTOCOPY OF REPLY FROM TO EXT.P-10 BY ASST.COMMISSIONER, AMBEDKAR NAGAR. EXHIBIT P12 PHOTOCOPY OF ORDER DATED 31/07/2018 UNDER CST ACT FOR 2011-12 EXHIBIT P13 PHOTOCOPY OF ORDER DATED 31/07/2018 UNDER CST ACT FOR 2012-13.
EXHIBIT P14 PHOTOCOPY OF ORDER DATED 31/07/2018 UNDER CST ACT FOR 2013-14.
EXHIBIT P15 PHOTOCOPY OF ORDER DATED 31/07/2018 UNDER CST ACT FOR 2014-15 WP(C).No. 31822 of 2018 5 EXHIBIT P16 PHOTOCOPY OF ORDER DATED 31/07/2018 UNDER CST ACT FOR 2015-16 RESPONDENTS' EXHIBITS NIL // TRUE COPY // P.A. TO JUDGE SD