APHC010580982024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY, THE TWENTY SIXTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION Nos: 30529 and 30530 of 2024 Between: 1. KSS PETRON PRIVATE LIMITED(IN LIQUIDATION), REPRESENTED BY SHRI. CS VINEET K CHAUDHARY OFFICIAL LIQUIDATOR, C/O. MADRAS CEMENTS LIMITED, KUMARASWAMY RAJA NAGAR, JAYANTHIPURAM, JAGGAIAHPET, KRISHNA DISTRICT-521 175. ...PETITIONER AND 1. THE COMMERCIAL TAX OFFICER, NANDIGAMA CIRCLE, VIJAYAWADA -1 DIVISION, D. NO. 74-14-2B, KRISHNA NAGAR YANAMALAKUDURU ROAD, ANDHRA PRADESH - 520 007. 2. THE JOINT COMMISSIONER OF STATE TAX, VIJAYAWADA -1 DIVISION, D. NO. 74-14-2B, KRISHNA NAGAR, YANAMALAKUDURU ROAD, VIJAYAWADA - 520 007 3. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY REVENUE DEPARTMENT, A.P. SECRETARIAT, VELEGAPUDI. ...RESPONDENT(S): 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 may be pleased to issue a writ of mandamus or any other writ, direction or order quashing the proceedings of the 1st Respondent in CST 2 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 Assessment Order dated 29.03.2022 issued vide A.O. No. ZH370322OD12454 for the FY 2016-17 in contravention of Section 33(5) of the Insolvency and Bankruptcy Code, 2016 as being without jurisdiction, arbitrary, unconstitutional, unreasonable, barred by limitation and against the principles of natural justice and to pass IA NO: 1 OF 2024 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 may be pleased stay the operation of the proceedings of the 1st Respondent in CST Assessment Order dated 29.03.2022 issued vide A.O. No. ZH370322OD12454 for the FY 2016-17 in contravention of Section 33(5) of the Insolvency and Bankruptcy Code, 2016, in the interest of justice and pass Counsel for the Petitioner: 1. ANIL KUMAR BEZAWADA Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX AND WRIT PETITION NO: 30530 of 2024 Between: 1. KSS PETRON PRIVATE LIMITED(IN LIQUIDATION), REPRESENTED BY SHRI. CS VINEET K CHAUDHARY OFFICIAL LIQUIDATOR, C/O. MADRAS CEMENTS LIMITED, KUMARASWAMY RAJA NAGAR, JAYANTHIPURAM, JAGGAIAHPET, KRISHNA DISTRICT - 521 175. ...PETITIONER AND 1. THE COMMERCIAL TAX OFFICER, NANDIGAMA CIRCLE, VIJAYAWADA -1 DIVISION, D. NO. 74-14-2B, KRISHNA NAGAR, YANAMALAKUDURU ROAD, ANDHRA PRADESH - 520 007. 2. THE JOINT COMMISSIONER OF STATE TAX, VIJAYAWADA -1 DIVISION, D. NO. 74-14-2B, KRISHNA NAGAR, 3 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 YANAMALAKUDURU ROAD, VIJAYAWADA - 520 007 3. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, REVENUE DEPARTMENT, A.P. SECRETARIAT, VELEGAPUDI. ...RESPONDENT(S): 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 tomay be pleased to issue a writ of mandamus or any other writ, direction or order quashing the proceedings of the 1st Respondent in CST Penalty Order dated 12.07.2022 issued vide A.O. No. ZH370722OD73982 for the FY 2016-17 consequent to the CST Assessment Order dated 29.03.2022, as being without jurisdiction, arbitrary, unconstitutional, unreasonable, barred by limitation and against the principles of natural justice. and to pass IA NO: 1 OF 2024 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 may be pleased stay the operation of the proceedings of the 1st Respondent in CST Penalty Order dated 12.07.2022 issued vide A.O. No. ZH370722OD88652 for the FY 2013-14 consequent to the CST Revision Order dated 29.03.2022, in the interest of justice and pass Counsel for the Petitioner: 1. ANIL KUMAR BEZAWADA Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX 4 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 The Court made the following Common Order: (Per Hon’ble Sri Justice R. Raghunandan Rao) The petitioner, is a limited company which is presently under liquidation. It had filed its returns, under the CST Act for the year 2016-17. The assessing authority, initiated assessment proceedings by issuing show cause notice, dated 12.10.2021. Thereafter, an order of assessment, dated 29.03.2022, was passed by the assessing authority. The assessing authority held that the petitioner had not filed necessary ‘F’ forms or ‘C’ forms in relation to turnover of Rs.67,89,150/- and treated the same as interstate sales, not supported by ‘C’ declaration forms, taxable @ 14.5% and assessed the entire turnover to a tax of Rs.9,84,427/-. The assessing authority also initiated penalty proceedings which culminated in the order of penalty, dated 12.07.2022. 2. This order of assessment and penalty are challenged in the present Writ Petitions and both are disposed of, by way of a common order. 3. The primary contention of the petitioner, in W.P.No.30529 of 2024, is that the assessment order is beyond limitation. It is contended that the period of limitation, for passing an order of assessment under Section 21(4), is four years from the last date available for filing a returns and six years under Section 21(5) of the APVAT Act. The petitioner would contend that the assessing authority, had sought to conduct the assessment under Section 21(5) so as to obtain the extended period of limitation. It is contended that the assessment should have been done under Section 21(4) and the 5 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 same was beyond limitation as the period of four (4) years would end on 01.05.2021. 4. The learned counsel for the petitioner would further contend that the provisions of Section 21(5) giving an extended period of limitation, for passing an order of assessment, would arise only when there is any willful evasion of tax committed by the dealer. Learned counsel for the petitioner would contend that there is no finding of willful evasion of tax committed by the petitioner herein and the only finding is that the turnovers have not been supported by ‘F’ forms or ‘C’ forms and as such, limitation available under Section 21(4) of A.P VAT Act would be applicable. He further contended that once the assessment order fails, on this ground, the order of penalty which is based on the assessment order would also fail. It is further contended that though the show cause notice and the order of penalty both seek to raise questions of evasion of tax, the said language in the penalty order would not be sufficient for such finding. 6. The learned Government Pleader for Commercial Taxes, on the other hand, would contend that a perusal of the show cause notice and the order of assessment and penalty would show that these proceedings had been initiated on the ground that the petitioner did not disclose any turnover at all and the turnover came to light upon verification of the waybills submitted by the petitioner. 6 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 7. In the present case, the order of the assessment is clearly beyond time, if the provisions of Section 21(4) are applied. However, the order of assessment would be within time, if the provision of Section 21(5) is applied. The provision of Section 21(5), granting extended period of limitation, would be available when there is a clear allegation and finding of willful evasion of tax by the dealer. Neither the show cause notice nor the order of assessment set out any such case of willful evasion of tax. Consequently, Section 21(5) would not be applicable and the limitation under Section 21(4) would be applicable. In such circumstances, the order of assessment is beyond limitation. The order of penalty which is based on the order of assessment would also to fail on that short ground and that the order of assessment itself is set aside. 8. Accordingly, both the Writ Petitions are allowed, by setting aside the order of assessment, dated 29.03.2022, and order of penalty, dated 12.07.2022. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J _________________ T.C.D. SEKHAR, J Date: 26.11.2025 KNN/BSM 7 RRR,J & TCDS,J W.P.No.30529 & W.P.No.30530 of 2024 THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HON'BLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION Nos.30529 & 30530 of 2024 (Per Hon’ble Sri Justice R. Raghunandan Rao) 26.11.2025 KNN/BSM