IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF MARCH, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.6667/2019 (T – RES) BETWEEN:
M/s. SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS OFFICE AT No.3/1 JP TECHNO PARK MILLERS TANK BUND ROAD VASANTH NAGARA, BENGALURU-52 REP. BY ITS AUTHORISED SIGNATORY Mr. NANDA DULAL SAMANTA. ... PETITIONER [BY SRI SYED KHAMRUDDIN, ADV.] AND:
1. COMMERCIAL TAX OFFICER [AUDIT] 1.5 OFFICE OF THE COMMERCIAL TAX OFFICER DGSTO -1, 3RD FLOOR, BMTC COMPLEX YESHAVANTAPURA, BENGALURU-560022.
2. STATE OF KARNATAKA REP. BY ITS SECRETARY DEPARTMENT OF FINANCE M.S. BUILDING BENGALURU-560001. …RESPONDENTS [BY SRI T.K.VEDAMURTHY, AGA.] THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER DATED 05.04.2018 PASSED BY THE RESPONDENT No.1 DEMANDING THE PETITIONER PAY A SUM OF RS.16,58,880/- AS TAX/INTEREST PAYABLE UNDER THE KVAT ACT FOR THE PERIOD 2012-2013 [ANNEXURE-A]; AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Learned Additional Government Advocate accepts notice for the respondents.
2. The petitioner is a registered dealer under the provisions of the Karnataka Value Added Tax Act, 2003 ['Act' for short] and is engaged in the business of Infrastructure Development. It is submitted that the petitioner had filed its returns in VAT-100 for the tax period 2012-2013. In the year 2017, the petitioner had shifted its business premises from No.401/402, No.11, Embassy Classic, 4th Vittal Mallya Road, Bengaluru- 560001 to the address at No.3/1, JP Techno Park, Millers Tank Bund Road, Vasanth Nagara, Bengaluru-560052 and the said change of address was intimated to the department through its website under an acknowledgement bearing Reference No.73466385.
3. It is the grievance of the petitioner that for the tax period 2012-13, the re-assessment proceedings were concluded without issuing notice to the petitioner on the premise that the notice sent to the old address through RPAD was returned with remarks “No such office in this address” and as such the respondent No.1 appears to have affixed the proposition notice on the door of the premises [old address] by drawing mahazar to that extent.
4. Learned counsel for the petitioner would submit that it was obligatory on the part of the department to serve the notice on the present address of the assessee considering the change of address which was communicated and acknowledged. The efforts made by the department to serve the notice on the petitioner at the old address would not validate the re-assessment order in the absence of due service of notice on the petitioner/assessee.
5. Learned Additional Government Advocate made an endeavour to justify the impugned order.
6. Considering the factual aspects as aforesaid, it is not in dispute that no service of notice was made on the assessee. On the other hand, the proposition notice was affixed on the premises [old address of the petitioner/assessee] albeit the change of address was communicated to the department and the same being acknowledged. It is further submitted by the learned counsel for the petitioner that subsequent to the receipt of the re-assessment order, the proposition notice was issued by the department at the request made by the petitioner. It is a well settled law that any order passed by the Quasi Judicial Authority without issuing proper notice is void ab initio and hit by the principles of natural justice.
In such circumstances, the writ petition is allowed setting aside the re-assessment order impugned as well as the demand notice and the proceedings are restored to the file of the respondent No.1 to proceed further in the matter.
The petitioner shall appear before the respondent No.1 on 02.04.2019 without expecting any notice and shall file reply/objections, to the proposition notice, if any.
The respondent No.2 shall pass appropriate orders in accordance with law after considering the reply/objections to be filed by the petitioner and hearing the petitioner, in an expedite manner.
Sd/-
JUDGE NC.