M/S. BLUE STAR LTD, SECUNDERABAD, REP BY ITS BRANCH MANAGER V. THE COMMISSIONER OF COMMERCIAL TAXES, A.P.NAMPALLY,HYDERABAD

SPLA/7/2008

AI Insights

The case involves M/s. Blue Star Limited, which appealed against an order by the Commissioner of Commercial Taxes, Andhra Pradesh, deeming certain turnovers as sales liable to tax under the APGST Act. The appellant argued that the Commissioner did not properly analyze the sale transactions or the documents provided, leading to a perverse finding. The respondent supported the original order. The court referenced a similar case, Writ Petition No.11528 of 2013, where it was directed that similar matters be re-examined. Consequently, the court set aside the impugned order and directed a fresh examination of the case.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 743561 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 15-09-2022
• Assessment Year: misc
• Other Referred Cases: Writ Petition No.11528 of 2013 and batch
• Laws Referred To: APGST Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K REDDY
• Assessee Lawyers: S DWARAKANATH
• Keywords: Assessment; Commercial Taxes; Deemed Sales; Revision; Special Appeal; Tax liability
• Section: 23(1); 20(1)

Judgement Text

"IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY,THE FIFTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE DR. JUSTICE SHAMEEM AKTHER THE HONOURABLE SRI JUSTICE E.V, VENUGOPAL SPECIAL APPEAL NO: 7 OF 2008 Appeal Under Section 23 (1) ( see Rule 4'l) of the APGST Act Agalnst the Order dated: 08-07-2008 made in CCTs Ref No. Llll (2)114312007-3 on the file of the Commissioner of Commericial Taxes, Andhra Pradesh Nampally, Hyderabad. Between: M/s. Blue star Limited,207. Sikh Road, B?ntia Estate, Secunderabad-S00 003, Rep by its Branch Manager, Mr. V. Vijayaraghavan, ..APPELLANT AND The Commissioner Of Commercial Taxes, Andhra Pradesh, Nampally, Hyderabad,. ...RESPONDENT Counsel for the Petitioner:SRl. S DWARAKANATH Counsel for the Respondent: K RAJI REDDY(SENIOR SC- INCOME TAX DEPT) The Court made the following: ORDER I THE HON,BLE DT. JUSTICE SHAMEEM AKTHER AND THE HON'BLE SRI JUSTICE E.V.VENUGOPAL E IAL APPE t2 JUDG ENT: (Per Hon'ble Dr.SA,l) This Special Appeal, under Section 23(1) of the APGST Act, has been filed by the appellant, challenging the impugned order, dated 08.07.2008, passed in CCT's Ref.No.L.III(2)/L43/2007-3, by the respondent-Com m issioner of Commercial Taxes, Andhra Pradesh, Hyderabad, whereby and whereunder the respondent confirmed the proposed revision under Section 20(1) of the APGST Act, treating the turnovers of Rs.77,22,453/- and Rs.52,97,180l- as deemed sales of goods in the State liable to tax under APGST Act. 2. Heard Sri S.Dwarakanath, learned counsel for the appellant, Sri K.Raji Reddy, rearned speciar standing counser for commerciar Taxes appearing for the respondent and perused the record. 3' Severar contentions are raised by the apperant before ihis Court that findings recorded by the respondent in the impugned order are contrary to the documents placed on record. The respondent did not examine the sale transactions in detail in determining the nature of the transactions and the appricabirity of the APGST Act. t The findings recorded by the respondents are perverse 2 O..5A,, & EVV,I SpJ.A.No-7 of 200a and not in consonance with the material on record. The respondent did not properly analyse the documents on record to arrive at a decision. Therefore, the impugned order dated 08.07.2008 passed by the respondent, is unsustainable and ultimately, prayed to set aside the same by allowing the appeal, as prayed for. 4. On the other hand, the learned Special Standing Counsel for Commercial Taxes appearing for the respondent supported the impugned order dated 08.07.2008 passed by the respondent. 5. Both the counsel on record brought to the notice of this Court that similar questions emerged for determination in Writ Petition No.11528 of 2013 and batch, wherein a Division Bench of the erstwhile High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh, vlde common order' dated 24.04.2015, was Pleased to set aside the assessment orders the authorities concerned to re- impugned therein and directed examine the matter and pass orders afresh' in accordance with law' after giving the petitioners therein a reasonable opportunity of being heard. 5. The facts and circumstances of the case on hand are akin to the facts and circumstances of the above referred W'P'No'11528 of 2013 and batch. I I / 3 Or.SA,) & EVV,.l spt.A.No.7 oi 2008 7. Accordingly, this Special Appeal is disposed of in terms of the above reFerred common order, dated 24.04.2015, passed in Writ Petition No.11528 of 2013 and batch, by the erstwhile High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh. The impugned order, dated 08.07.2008, passed in CCT'S Ref.No.L.III(2)/143/2007-3, by the respondent is set aside, Consequently, CCT's Ref.No.L.III(2)/L43/2007-3, is restored to its file and the respondent is directed to re-examine the subject matter of this appeal and pass orders afresh, in accordance with law, after giving reasonable opportunity of hearing to the appellant herein. As the subject transactions pertains to the Assessment year 19g7-gg, the respondent is directed to complete the said exercise within a period of three (03) months from the date of receipt of a copy of this judgment. Miscellaneous petitions, iF any, pending in this appeal, shall stand closed. There shall be no order as to costs. To, ,TRUE COPYII SD/.B.S.CHIRANJEEVI JOINT REGTSTRAR ..t SECTION OFFICER ' Ilr%:l#:l:?f,lk'tJ;:J: iifl?a I ta xes, A n d hra p rad esh, N a mpary, 2. One CC.to SRt. S. Dwarakanath ,Advocate IOPUCI t rB\"tB? to sRr K Raji Reddy(sENroR sc_ INCOME TAX DEpr), Advocare 4. Two CD Copies TJ ?t^tn ^ I I ( HIGH COURT DATED:1 510912022 ORDER SPLA.No.7 of 2008 DISPOSING OF SPECIAL APPEAL WTHOUT COSTS. 1E1.1.,1,, * .+r N- 7 . - (4 * t) ia no t s /. 0 H qtrf^, tr r il :::- I I I I , I "