Court sets aside assessment order under A.P. VAT Act for 2009-2013 tax period, requires deposit for re-assessment

The court set aside the assessment order under the A.P. VAT Act, 2005 for the tax period 2009-10 to 2012-13, requiring the petitioner to deposit 12.5% of the tax amount within six weeks for re-assessment. The petitioner was directed to submit supporting documents for re-evaluation within four weeks from the deposit date. Prior deposits would be credited, and pending petitions were disposed of without costs.

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Issues: Challenge to assessment order under A.P. VAT Act, 2005 for tax period 2009-10 to 2012-13, non-compliance with conditional interim stay, assertion of ex-parte nature of assessment order, opportunity to substantiate case, requirement of deposit for appeal, delay in effectuating assessment order, relief granted subject to deposit and re-assessment.

Assessment Order Challenge:
The writ petition challenged the assessment order dated 28.03.2014 by the Commercial Tax Officer under the A.P. VAT Act, 2005 for the tax period 2009-10 to 2012-13, holding the petitioner company liable for tax dues amounting to Rs. 8,53,02,597. The petitioner sought to set aside this order.

Non-Compliance with Stay Order:
Although an interim stay was conditionally granted on further proceedings related to the assessment order, the petitioner failed to comply with the condition of depositing 50% of the disputed tax amount as directed, leading to non-compliance with the stay order.

Ex-Parte Nature of Assessment Order:
The petitioner claimed the assessment order was ex-parte as their submitted material was allegedly not considered. However, the respondents contended that the material was not available with them. This factual dispute was deemed unresolved in the writ petition.

Opportunity to Substantiate Case:
The petitioner asserted that given an opportunity, they could substantiate their case before the authority. The court acknowledged this assertion but noted that the assessment order was appealable, requiring a deposit for appeal maintenance, which the petitioner did not fulfill.

Delay in Effectuating Assessment Order:
Despite the assessment order being passed in March 2014, it had not been enforced due to the conditional interim order's non-compliance. The court highlighted that granting an opportunity to the petitioner at this stage would not harm the revenue's interest.

Relief Granted Subject to Deposit and Re-assessment:
The court allowed the writ petition, setting aside the assessment order subject to the petitioner depositing 12.5% of the assessed tax amount within six weeks. The petitioner was directed to submit all supporting documents to the Commercial Tax Officer for re-assessment, to be completed within four weeks from the deposit date. Any prior deposits by the petitioner would be credited. Pending petitions were disposed of with no costs awarded.

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