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.50852 OF 2018(T-RES) BETWEEN:
M/s. Suma Oil Agencies, No.507, Pillanna Garden, 3rd stage, Nagawara Main Road, Bengaluru.
(Represented by its Propritrix Smt. Suma U.S, Aged 50 years.
(By Sri. K.M.Shivayogiswamy, Advocate) AND :
1. The Commissioner of Commercial Taxes, Vanijya Therige Karyalaya, Gandhinagar, Bengaluru-560 009.
... Petitioner 2. Deputy Commissioner of Commercial Taxes (Audit-5.5, DVO-5, V.T.K-2, 5th floor, Koramangala, Bengaluru-560 047.
3. Deputy Commissioner of Commercial Taxes (Audit)-5.2, VAT Division-5, 5th floor, B-Block, Koramangala, Bengaluru-560 047.
… Respondents (By Sri. T.K.Vedamurthy, AGA) This Writ Petition filed under Articles 226 and 227 of the Constitution of India, praying to quash the impugned ex-parte reassessment order dated 20.02.2018 and the consequential demand notice dated 03.10.2018 passed by the respondent No.2 under the provisions of KVAT Act in relation to the assessment period 2012-2013 in the petitioners case vide annexure-E and F respectively.
This Writ Petition is 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 ex-parte re-assessment order dated 20.02.2018 and consequential demand notice dated 03.10.2018 passed by respondent No.2 under the provisions of the Karnataka Value Added Tax Act, 2003 relating to the tax periods 2012-2013.
2. The petitioner was a registered dealer under the provision of the Karnataka Value Added Tax Act, 2003(hereinafter referred to as ‘the Act’ for short). It is submitted that the petitioner was issued with re-assessment notice relating to the tax period 2012-2013 by the Deputy Commissioner of Commercial Taxes (Audit) - 5.2 to which the petitioner has suitably replied and has produced the books of accounts before the said authority. It appears that subsequently, re-assessment notice was issued by the Deputy Commissioner of Commercial Taxes (Audit)-
5.5 to reassess the assessee. It transpires that the petitioner has brought to the notice of the said authority inasmuch as earlier notice issued by the Deputy Commissioner (Audit) - 5.2 relating to the very same tax periods. Despite the same, the Deputy Commissioner of Commercial Taxes (Audit)-5.5 has passed the ex-parte re-assessment order. Hence, this writ petition.
3. Ex-facie it appears that the assignment note issued to the DCCT (Audit)-5.2 relating to the tax periods 2010-2011 and 2011-2012 has been considered to be the assignment issued even to the tax period 2012-2013, by the said authority resulting in issuance of re-assessment notice to reassess the assessee under the provisions of the Act for the tax period 2012-13. On the reply filed by the petitioner to the notice issued by the DCCT (Audit 5.5), an endorsement dated 14.12.2016 has been issued by the said authority - DCCT (Audit)-5.5) bringing these aspects to the notice of the petitioner, more particularly, the assessment under VAT and GST tax period 2012-2013 being assigned to the DCCT (Audit)- 5.5, Bengaluru. The jurisdiction of the officers to proceed with the reassessment relating to the tax period 2012-2013 was not clear amongst the concerned authorities. The ex-parte re-assessment order now impugned certainly deserves to be set aside for the reason that assessee had appeared before DCCT (Audit)-5.2, Bengaluru, pursuant to the re- assessment notice issued by the said authority relating to the tax period in question, if that be the position, the DCCT (Audit)-5.2 ought to have transferred the proceedings initiated by him to the competent authority, assigned with the jurisdiction. That having not been done, the petitioner is made to suffer.
4. Having regard to the facts and circumstances, this Court deems it appropriate to set aside the order impugned at Annexure-E dated 20.02.2018 as well as the Demand Notice at Annexure-F dated 03.10.2018 relating to the tax period 2012-2013 and remit the proceedings to the respondent No.2 DCCT(Audit)-5.5, Bengaluru, to redo the assessment after providing an opportunity of hearing to the petitioner and ordered accordingly.
The petitioner is permitted to appear before the respondent No.2 on 05.08.2019 along with the reply/objections to the re-assessment notice issued by the respondent No.2 and thereafter, respondent No.2 shall conclude the re-assessment in accordance with law in an expedite manner.
Writ petition stands disposed of accordingly.
Sd/- JUDGE ag