2020 (9) TMI 1300 - HC - VAT and Sales Tax

Court disposes VAT demand petition for Assessment Years 2011-2015, grants challenge liberty, restrains coercive action

The court disposed of the petition against the VAT demand for Assessment Years 2011-2012 to 2014-2015, granting the petitioner liberty to challenge ... Maintainability of the present petition - alternative efficacious remedy of an appeal - Recovery of VAT dues - HELD THAT:- The present petition is disposed of with liberty granted to the petitioner to approach the Competent Authority to assail the Assessment orders passed in respect of the Assessment years 2011-2012 to 2014-2015, in accordance with law, within a period of two weeks from today. The respondents shall not take any coercive action against the petitioner in terms of the impugned Writ of demand dated 04.09.2020, for the aforesaid period. Issues Involved:Petition against demand raised for VAT due for Assessment Years 2011-2012 to 2014-2015, maintainability of the petition in light of alternative remedy of appeal, petitioner's claim of not being served with Assessment orders, opposition to maintainability by respondent, disposal of the petition with liberty granted to approach Competent Authority.Analysis:1. Petition Against VAT Demand:The petitioner filed a petition against respondents No.1/GNCTD, Commissioner of State Goods and Service Tax, and Value Added Tax Officer, Ward 15, seeking a writ of certiorari to quash the demand of Rs. 2,94,99,225/- raised for VAT due for the Assessment Years 2011-2012 to 2014-2015.2. Maintainability of the Petition:The court raised the issue of the maintainability of the petition, considering the availability of an alternative efficacious remedy of an appeal under the statute. The petitioner's counsel was requested to address the court on this aspect.3. Petitioner's Claim of Non-Service of Assessment Orders:The petitioner claimed that it was not served with the Assessment orders for the relevant years and became aware of the orders only upon receiving the Writ of demand dated 04.09.2020. The petitioner expressed intent to file objections under Section 74 of the Delhi Value Added Tax Act, 2005, after obtaining certified copies of the Assessment orders.4. Opposition to Maintainability:The respondent's counsel opposed the maintainability of the petition, asserting that the petitioner should seek remedies under the statute against the Assessment orders instead of approaching the court directly.5. Court's Decision and Disposal of the Petition:Considering the submissions, the court disposed of the petition, granting liberty to the petitioner to approach the Competent Authority to challenge the Assessment orders passed for the relevant years within two weeks. The respondents were restrained from taking coercive action against the petitioner during this period.6. Conclusion:The petition was ultimately disposed of, along with any pending applications, providing the petitioner with the opportunity to address the Assessment orders through the prescribed legal channels within the stipulated timeframe.This detailed analysis covers the issues raised in the judgment, including the petition against the VAT demand, the maintainability of the petition, the petitioner's claim of non-service of Assessment orders, opposition to maintainability by the respondent, and the court's decision to dispose of the petition with liberty granted to approach the Competent Authority.