Hon'ble Rajesh Chandra,J.
Under the order dated 29th May, 2010 passed by Deputy Commissioner Commercial Tax, Division-3, Noida, the petitioner has been assessed to the tune of Rs. 2,15,00,000.00/- towards non-deposit of the T.D.S. under Section 34 (1) read with Section 34 (6) of the U.P. Value Added Tax Act, plus penalty thereon made under Section 34 (8) of the Act.
Standing Counsel on behalf of department points out that the period of assessment is subsequent to the enforcement of the Value Added Tax Act as well as to the issuance of the notification dated 24.05.2008 which has been enforced with effect from 4th March, 2008 providing for deduction at the rate of 4% on the amount paid towards work contract. He submits against the order impugned, the petitioner has statutory alternative remedy under Section 55 Value Added Tax Act by way of appeal as also the remedy of Revision under Section
56. He submits that the U.P. Value Added Tax Act, 2008 is a code in itself and provides complete machinery for redressel of the grievance including the one raised in the present writ petition.
Initially the counsel for the petitioner made an attempt to challenge the order on the ground that assessee has been denied opportunity of hearing and that the transaction entered into is not covered by work contract.
However, from the record we find that a counsel had appeared for the assessee in respect to the notice and he also filed written submission.
In the facts and circumstances of the case we are of the considered opinion that the proceedings must be initiated upon to avail the statutory alternative remedy available under the Value Added Tax Act at the first instance. It is not a case of complete denial of opportunity of hearing. The issue as to whether the opportunity afforded was sufficient or not can be examined by the appellant authority. The issue pertaining to the transaction being covered by work contract can also be examined by the appellate authority under the Act.
In view of the aforesaid the present writ petition is dismissed on the ground of availability of statutory alternative remedy under Section 55 and Section 56 of the U.P. Value Added Tax Act, 2008.
Order Date :- 23.6.2010 M/A.