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2020 DIGILAW 713 (TS)

Studio 3d Proprietor Firm v. State Of Telangana

2020-10-01

M.S.RAMACHANDRA RAO, T.AMARNATH GOUD

body2020
JUDGMENT M.S. Ramachandra Rao, J. - In this Writ Petition, petitioner is challenging the notice of Final VAT Assessment and Demand dt.30.03.2020 issued by the 1st respondent. 2. Petitioner received final notice dt.13.03.2020 from the 3rd respondent alleging that a show cause notice for the assessment under the Central Sales Tax Act, 1956 (for short 'the Act') for the year 2015-16 was issued to the petitioner and that the petitioner was permitted to avail the opportunity of personal hearing in the said notice; that petitioner having filed objections, did not avail the opportunity of personal hearing and so a final opportunity was given to the petitioner to avail such personal hearing by 16.03.2020. 3. This communication was received by the petitioner on 17.03.2020, after the date fixed for personal hearing had expired. 4. Petitioner contends that petitioner did not even receive any show cause notice from the 3rd respondent prior to the receipt on 17.03.2020 of the final notice dt.13.03.2020, and so the petitioner could not defend itself before the 3rd respondent. 5. It was also contended that there was a lockdown imposed on account of COVID-19 pandemic situation and in these circumstances, it was not open to the 3rd respondent to issue the impugned notice of final VAT assessment and demand dt.30.03.2020 stating that there was a final assessment made under the Act by the 3rd respondent in the midst of the Pandemic without serving a prior show cause notice on the petitioner and without giving opportunity to file objections or providing personal hearing. 6. Sri J.Anil Kumar, Special Counsel for Commercial Taxes appearing for respondents does not dispute that the final notice dt.13.03.2020 providing personal hearing on 16.03.2020 was received by the petitioner on 17.03.2020 and the petitioner could not avail the opportunity of personal hearing. 7. It is also not disputed that there is no evidence of service of any prior show cause notice of assessment for the year 2015-16 on the petitioner, to which the petitioner could have filed objections. It is also not in dispute that from 21.03.2020 there was a lock down imposed by the Statement Government as well as the Union of India owing to COVID-19 Pandemic situation and the petitioner was disabled from effectively defending itself before the 3rd respondent. Thus there was serious prejudice caused to the petitioner. 8. It is also not in dispute that from 21.03.2020 there was a lock down imposed by the Statement Government as well as the Union of India owing to COVID-19 Pandemic situation and the petitioner was disabled from effectively defending itself before the 3rd respondent. Thus there was serious prejudice caused to the petitioner. 8. Therefore, this Writ Petition is allowed; the impugned notice of Final VAT Assessment and Demand dt.13.03.2020 issued by the 3rd respondent is set aside; the 1st respondent is directed to serve a show cause on the petitioner indicating the turnover which is being proposed to be taxed under the Central Sales Tax Act, 1956; petitioner is granted six weeks time from the date of receipt of said show cause to file objections to the same with supporting material; a personal hearing shall be provided to the petitioner; and then a reasoned order shall be passed in accordance with law and communicated to the petitioner. No order as to costs. 9. Consequently, miscellaneous petitions, pending if any, shall stand closed.