IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JULY, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.57649/2018 (T – RES) BETWEEN:
M/s AV SENSE LAB PRIVATE LTD., A COMPANY REGISTERED UNDER THE INDIAN COMPANIES ACT, 1956 HAVING REGISTERED OFFICE AT NO.547 6TH A MAIN, JEEVANBHIMA NAGAR BENGALURU-560075 REP BY ITS DIRECTOR SRI RAMESH KUMAR S/O SRI NEELAMEGAM AGED ABOUT 42 YEARS ... PETITIONER [BY SMT.VANI H., ADV.] AND:
1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT-5.5) DVO-5, B BLOCK, 5TH FLOOR, VANIJYA THERIGE KARYALAYA-2 KORAMANGALA BENGALURU-560047 2. STATE OF KARNATAKA DEPARTMENT OF FINANCE BY ITS SECRETARY VIDHANA SOUDHA BENGALURU-560001 …RESPONDENTS [BY SRI T.K.VEDAMURTHY, AGA.] THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE REASSESSMENT ORDER DATED 26.02.2018 FOR THE YEAR 2013-2014 PASSED BY R-1 AT ANNEXURE-C AND THE CONSEQUENT DEMAND NOTICE IN FORM VAT 180 DATED 26.02.2018 VIDE ANNEXURE-D AND ETC., THIS PETITION COMING ON FOR HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Heard the learned counsel appearing for the parties.
2. The petitioner has challenged the re- assessment order dated 26.02.2018 relating to the tax periods 2013-14 and consequent demand notice/recovery notice.
3. The petitioner was a registered dealer under the provisions of Karnataka Value Added Tax Act, 2003 (‘Act’ for short). The petitioner was engaged in the business of trading in audio and video equipment, computer software, web cameras etc., The order impugned dated 26.02.2018 depicts the status of the dealer as a de-registered case as per the Analysis Report module ascertained from E-filing system – related to concerned Office and as such the attempt made by the Assessing Officer to serve pre-assessment notice has not fructified. The said notice was returned as unserved by the postal authority. In the circumstances, the Assessing Authority having no other option has concluded the re-assessment proceedings exparte. Being aggrieved, the petitioner is before this Court.
4. Having regard to the facts and circumstances of the case, this Court is of the considered opinion that the ends of justice would be sub-served in setting aside the order impugned and provide an opportunity to the petitioner to appear before the Assessing Authority and putforth its contentions.
5. Hence, the impugned order at Annexure – C dated 26.02.2018 as well as the demand notice at Annexure – D and the recovery notice at Annexure – E are set aside and the proceedings are restored to the file of respondent No.1 – Assessing Authority, to redo the re-assessment in accordance with law.
6. The petitioner shall appear before the Assessing Officer on 22.07.2019 without awaiting for any notice. Respondent No.1 shall conclude the re- assessment proceedings in an expedite manner after providing an opportunity of hearing to the petitioner.
With the aforesaid observations and directions, the writ petition stands disposed of.
Sd/- JUDGE PMR