IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLEBLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HONOURABLEBLE SRI JUSTICE HARINATH.N WRIT PETITION Nos: 30501 OF 2023 AND 16819 OF 2024 WRIT PETITION NO: 30501 OF 2023 Between: Chakkas Enterprises, Having its former Regd. Office at D. No. 21/1/85/A, Beside TSR Towers, Ganugapalem, Ongole, Andhra Pradesh - 523 001 Rep by its Proprietor Mr. Chakka Sundar Raja. ...PETITIONER AND 1. The Chief Commissioner of State Taxes, D. No.12-468-4, NH-16Service Road, Kunchanapally, Guntur District Andhra Pradesh - 522501. The Deputy Assistant Commissioner (ST) -1, O/o. The Assistant Commissioner Ongole -1 Circle, Ongole, Prakasam District Andhra Pradesh The Commercial Tax Officer, Addanki Circle, Addanki Prakasam District The State Bank of India, Commercial Branch, Ongole Ramakuravar Street, Santhapet Ongole, Prakasam District Rep by its Branch Manager. 2. 3. 4. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or Direction, more particularly a Writ in the nature of MANDAMUS declaring the action of 2nd Respondent in issuing the impugned Assessment Order in AO No. X' ZH3708210D83553 Dt. 24.08.2021 U/s. 21(3)(4)(5) of the AP VAT Act, 2005 read with Rule 25(5) of AP VAT Rules, 2005 and issuing the impugned Garnishee Notice under FORM GST DRC-13 dt. 05.10.2023 to the 5th Respondent herein against the Petitioner is wholly illegal, arbitrary, without jurisdiction, violative of Article 14, and 21 of the Constitution and violative of the provisions of APVAT Act, 2005 and CGST Act, 2017 and consequently set aside Assessment Order in AO No. ZH3708210D83553 Dt. 24.08.2021 and consequential attachment orders or to pass such other Order (s) as this Hon'ble Court deems fit, proper and necessary in the interest of justice and equity. 1 (Main prayer was amended as per c.o.dt.27.11.2024 Vide I.A.No.2 of 2024 in W.P.No.30501 of 2023) lA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to stay all further proceedings including operation of the impugned Garnishee Notice under FORM GST DRC - 13 dt. 05.10.2023 pending disposal of the Writ Petition or to pass such other Order (s) as this Hon'ble Court deems fit, proper and necessary in the interest of justice and equity. lA NO: 1 OF 2024 Between: The Commercial Tax Officer, Addanki Circle, Addanki Prakasam District ...PETITIONER AND 1. Chakkas Enterprises, Having its former Regd. Office at D. No. 21/1/85/A, Beside TSR Towers, Ganugapalem, Ongole, Andhra Pradesh - 523 001 Rep by its Proprietor Mr. Chakka Sundar Raja. ...PETITIONER/RESPONDENT 2. The Chief Commissioner of State Taxes, D. No. 12-468-4, NH-16Service Road, Kunchanapally, Guntur District Andhra Pradesh - 522501. 3. The Deputy Assistant Commissioner (ST) -1, O/o. The Assistant Commissioner Ongole -1 Circle, Ongole, Prakasam District Andhra Pradesh 4. The State Bank of India, Commercial Branch, Ongole Ramakuravar Street, Santhapet Ongole, Prakasam District Rep by its Branch Manager. / / ...RESPONDENT/RESPONDENTS Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order dated; 24.11.2023 passed by the Hon’ble Court in lA No.01/2023 in WP No.30501 of 2023. Counsel for the Petitioner: SRI PEDDIBHOTLA VENKATA SAI RAJESH Counsel for the Respondent Nos.1 to 3 : GP FOR COMMERCIAL TAX Counsel for the Respondent No.4 : NONE APPEARED WRIT PETITION NO: 16819 OF 2024 Eletween: Chakka Sundara Raja, S/o. Ch. Lakshmi Narasimham Male, aged about 52 years, Occ: Business, R/o. Plot No. A503, Trunk Road Ganugapalem, Ongole, Prakasam District, Andhra Pradesh. ...PETITIONER AND The State of AP, Rep. by its Principal Secretary Registration and Stamps Department Secretariat Buildings, Velagapudi Amaravati, Andhra Pradesh. Commissioner and Inspector General Registration and Stamps Department, Vijayawada, Andhra Pradesh. The District Registrar, Registration and Stamps Department Prakasam District, Andhra Pradesh. The District Collector, Prakasam District, Andhra Pradesh. 1. 2. 3. 4. / / 5. The Sub-Registrar, Ongole, Andhra Pradesh. 6. The Deputy Commercial Tax Officer, Ongole -1 Circle, Ongole. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or Direction, particularly a Writ in the nature of MANDAMUS declaring the action of 5 Respondent in placing and retaining the Petitioners house property in Plot No. A503, Trunk Road, Revenue Ward No. 26, Ongole in the Prohibitory List of properties in the 5'^ Respondent Office despite Orders Dt. 24.11.2023 in I.A No. 1 of 2023 in W.P No. 30501 of 2023 of this Hon'ble Court as illegal, arbitrary, violative of Article 300A of the Constitution, and consequently direct the Respondents to delete the Petitioners property from Prohibitory List of properties. in more th lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to direct the Respondents to consider and dispose the Representation Dt. 24.07.2024 made by the Petitioner pending disposal of the main Writ Petition. Counsel for the Petitioner : SRI PEDDIBHOTLA VENKATA SAI RAJESH Counsel for the Respondent Nos.1 to 3 & 6 : GP FOR COMMERCIAL TAX Counsel for the Respondent Nos.4 & 5 : GP FOR REGISTRATION AND STAMPS The Court made the following: COMMON ORDER 1 RRR, J & HN, J W.P.NO.30501/2023& W,P.No.16819/2024 APHC010590822023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3488] WEDNESDAY. THE FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N W.P.NO: 30501/2023 & W.P.No. 16819/2024 W.P.No.30501/2023 Between: Chakkas Enterprises ...PETITIONER AND The Chief Commissioner Of State Taxes and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. PEDDIBHOTLA VENKATA SAI RAJESH Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX WRIT PETITION NO: 16819/2024 Between: Chakka Sundara Raja ...PETITIONER AND The State Of Ap and Others ...RESPONDENT(S) Counsel for the Petitioner: 1, PEDDIBHOTLA VENKATA SAI RAJESH Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX 2.GP FOR REGISTRATION AND STAMPS 2 RRR, J & HN, J W.P.No.30501/2023 & W.P.No.16819/2024 The Court made the following Common Order: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri P. Venkata Sai Rajesh, learned counsel appearing for the petitioner and learned Government Pleader for Commercial Tax appearing for respondents 1 to 3. 2. These two writ petitions have been filed by the same petitioner in relation to tax demand arising for the tax period 02.06.2014 to 13.06.2017 and the consequent order dated 16.09.2021 in relation to attachment of property and bank accounts of the petitioner. 3. The petitioner is registered as a dealer under the A.P. Value Added Tax Act, 2005 (for short 'the Act’) and has been filing his returns in relation to the tax period mentioned above. The Commercial Tax Officer, Addanki Circle, had passed an assessment order, dated 24.08.2021, and a subsequent notice of penalty dated 16.09.2021. The petitioner contends that he did not receive these orders or notices until the bank accounts of the petitioner were attached and subsequently immoveable property of the petitioner was also attached for recovery of the amounts, which arose out of the order of assessment, dated 24.08.2021. 4. The petitioner had initially challenged only the orders of attachment of the bank account and the immoveable property. However, after 3 RRR, J & HN, J W.P.No,30501/2023& W.P.No.16819/2024 receipt of the order of assessment, the petitioner has amended the prayer in W.P.No.30501 of 2023 raising a challenge to the assessment order also. The case of the petitioner is that the tax period in question ends 30.06.2017 and consequently the limitation for issuing an assessment order under Section 21 (4) of the Act is restricted to four years from the end of the period, which would be 30.06.2021. However, the order has been passed on 24.08.2021 and is consequently beyond limitation and nonest. 5. on The Assessing Officer has filed a counter affidavit stating that the petitioner had deliberately avoided service of notices and deliberately refused to cooperate with the Assessing Officer. She would also contend that the notice of the order was sent to the last known business address of the petitioner by registered post and the same had been served on 28.07.2021 itself. The Assessing Officer would also contend that subsequent penalty notice, dated 16.09.2021, was also sent to the business address of the petitioner, under registered post, and the same was served on 04.10.2021. The Assessing Officer, after contending that the writ is not maintainable as there is an effective alternative remedy of appeal, would also contend that the of Section 21(5) would be applicable wherein the period of limitation would be six years, ending on 30.06.2023. The learned Government Pleader for Commercial Tax would contend that the impugned assessment order came to be passed, on a best judgment assessment basis, in view of the refusal of the petitioner to attend to 6. provisions 7. 4 RRR, J & HN, J W.P.No.30501/2023 & W.P.No.16819/2024 the assessment proceedings and in view of the fact that no books of accounts or other material have been placed before the Assessing Officer. Learned G.P. would contend that in such circumstances, it would have to be held that there is willful suppression of facts, due to which provisions of Section 21(5) of the Act would be applicable. A perusal of the impugned order would show that the entire order goes on the basis of best judgment assessment, relying upon the returns filed by the petitioner. There is nowhere any mention of suppression of facts, much less, willful suppression of facts, resulting in willful evasion of tax, which is the sine qua non, for invoking Section 21(5) of the Act. In such circumstances, the provisions of Section 21(5) of the Act would not be applicable and the period of limitation would be four years, as set out under Section 21 (4) of the Act. 8. As the impugned assessment order has been passed beyond the period stipulated under Section 21(4) of the Act, it must be held that the impugned order is beyond limitation and non-est. 9. 10. Accordingly, both the writ petitions are allowed setting aside the impugned assessment order of the Commercial Tax Officer, Addanki Circle, dated 24.08.2021 and penalty notice dated 16.09.2021. Consequently, all the consequential proceedings of attachment of bank account as well as the immoveable property of the petitioner are also set aside. There shall be no order as to costs. RRR, J&HN, J W.P,No,30501/2023 & W.P.No.16819/2024 applications, if any, shall stand Sd/- K TATA RAO /^ECTOfi OFFICER As a sequel, pending miscellaneous closed. //TRUE COPY// To, 2. The Deputy Assistant Commissioner (ST) -1 o/o The Assistant Commtssioner Ongole -, Circle, Ongile, PraKaL^D^trAnShra ' assTas"»' Dgas^gga'"g),‘°' Registration and Stamps ' £SgiKS.r””" 8. The District Collector, Prakasam 9. The Sub-Registrar, Ongole, Andhra Pradesh. lO.The Deputy Commercial Tax Officer 11.One CC to Sri Peddibhotia Venkata Sai for Commercial Tax 14.Three C.D. Copies. Addanki Prakasam and Stamps Department Prakasam District, Andhra Pradesh. Ongole -1 Circle, Ongole. Rajesh, Advocate [OPUC] High Court of Andhra Pradesh. High Court of Andhra Cnr / HIGH COURT CNR DATED;05/02/2025 X \0 ^®5i06SPA?^**^ •y' fte ?o» <o COMMON ORDER WP.Nos.30501 of 2023 and 16819 of 2024 ALLOWING THEW.Ps WITHOUT COSTS