IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF OCTOBER, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.50067/2019 (T – RES) BETWEEN:
VTI INTEGRATED SYSTEMS PRIVATE LIMITED DIVYASHREE NR ENCLAVE, BLOCK A, 4TH FLOOR PLOT No.1, EPIP INDUSTRIAL AREA, WHITEFIELD BENGALURU – 560 066 REPRESENTED BY ITS FINANCE DIRECTOR MR. NIKHIL AGARWAL AND:
... PETITIONER [BY SRI SURYANARAYANA T, ADV.] DEPUTY COMMISSIONER OF COMMERCIAL TAXES AUDIT – 1.6, DVO-1, BANGALORE-560 022.
…RESPONDENT [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 11.03.2019 FOR THE PERIOD 2013- 14 AND DATED 01.03.2019 FOR THE PERIOD 2014-15 PASSED BY THE RESPONDENT U/S 39(1) R/W 72(2) AND 36(1) OF THE KVAT ACT (ANNEXURE-B AND C) THIS PETITION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Learned Additional Government Advocate accepts notice for the respondent.
The petitioner has assailed the re-assessment orders relating to the tax periods 2013-14 and 2014-15 passed by the respondent Under Section 39(1) read with Sections 72(2) and 36(1) of the Karnataka Value Added Tax Act, 2003 and consequential demand notices as well as the garnishee notice issued by the respondent.
2. It is evident from the order impugned that the proposition notice dated: 21.01.2019 was returned back by the Indian Postal Authorities with remarks “left”. It is not in dispute that the petitioner’s VAT registration was deregistered with effect from 21.07.2016. The ex-parte re-assessment orders impugned are passed subsequent to de-registration and the same calls for interference by this court for want of service of notice on the assessee.
3. Accordingly, the re-assessment orders at Annexures-‘B’ and ‘C’ both dated 11.03.2019, demand notices dated 11.03.2019 (Annexures-‘B’ and ‘C’) and garnishee notice dated 21.06.2019 (Annexure-‘D’) are quashed. The matter is remitted to the respondent- Authority to redo the assessment in accordance with law. The petitioner shall submit the reply/objections before the respondent-Authority within two weeks from today. The petitioner is permitted to appear before the respondent-Authority on 12.11.2019, without awaiting any notice and shall take further orders. The respondent-Authority shall conclude the re-assessment in an expedite manner after providing an opportunity of hearing to the petitioner.
With the aforesaid observations and directions, writ petition stands disposed of.
PMR/BSS Sd/- JUDGE