IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF DECEMBER, 2019 BEFORE THE HON’BLE MRS.JUSTICE S.SUJATHA WRIT PETITION No.46692/2019 (T – RES) BETWEEN :
M/S SOWMYASHREE TRADERS SOWMYASHREE NILAYA, VINAYAKA NAGAR, TIPTUR , REP BY ITS PROPRIETOR SRI B C PRABHUSWAMY, S/O LATE CHENNABASAPPA AGED ABOUT 56 YEARS ... PETITIONER (BY SRI THIRUMALESH, ADV.) AND :
1 . STATE OF KARNATAKA REP BY PRINCIPAL SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT , GOVERNMENT OF KARNATAKA VIDHANA SOUDHA BENGALURU - 560001 2 . COMMISSIONER OF COMMERCIAL TAXES KARNATAKA VANIJYA THERIGE KARYALAYA GANDHINAGAR, BENGALURU - 560009 3 . ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT), TIPTUR, B H ROAD, TIPTUR …RESPONDENTS (BY SRI T.K.VEDAMURTHY, AGA.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED UNDER SECTION 9(2) OF CST ACT DATED 31.07.2019 BY ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT), TIPTUR FOR THE YEAR 2006-07 IN CASE ORDER ANNEXURE-K.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R The petitioner has challenged the assessment order dated 31/07/2019 passed by the Assistant Commissioner of Commercial Taxes (audit) Tiptur, relating to the tax periods April 2006 to March 2007 as well as April 2007 to March 2008.
2. The petitioner is a proprietor concern and was a dealer registered under the Karnataka Value Added Tax Act, 2003 (KVAT Act, 2003) and Central Sales Tax Act, 1956 (CST Act, 1956).
3. The petitioner is engaged in the business of trading agricultural produce in the APMC yard, Tiptur.
The assessment orders were passed under Section 9(2) of the CST Act read with Section 41(2) and Section 36/37 of KVAT Act relating to the periods involved herein. Being aggrieved, the petitioner is before this Court mainly on the ground that the re-assessment orders are barred by limitation and the Assessing Authority has considered the account number of the different dealer in order to fix tax liability on the petitioner. It is contended that such arbitrary and capricious action of the respondents-authorities being without jurisdiction and against the well settled principles of law calls for interference in the writ jurisdiction.
4. Learned Additional Government Advocate appearing for the respondent No.1, on instructions fairly submits that by inadvertence, the Assessing Authority has taken into consideration the account number of Someshwara Enterprises by construing it as Somyashri Traders and the same requires re-consideration.
5. The copy of the letter addressed by the Assistant Commissioner of Commercial Taxes, respondent No.3 (in charge) dated 13/12/2019 addressed to the learned Government Advocate is placed on record.
6. In view of the aforesaid, it is obvious that the matter requires re-consideration by the respondent No.3. Hence, the impugned re-assessment orders at Annexures-K and L, of even date 31/07/2019 are set aside and the proceedings are restored to the file of respondent No.3. The petitioner shall appear before respondent No.3 on 03/01/2020 without waiting for any notice. Respondent No.2 shall provide an opportunity of hearing to the petitioner and thereafter re-assessment order shall be passed in accordance with law, in an expedite manner.
The writ petition stands disposed of, in terms of the above.
Sd/- JUDGE Msu