TaxTMI 
TaxTMI 
2021 (7) TMI 638
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....sequential penalty and urgent notices dated 16.11.2020 and 16.03.2021 respectively have been challenged by the petitioner-assessee. 2. Petitioner is a private bus operator and is assessed under the jurisdiction of respondent No.3/Commercial Tax Officer. On the basis of a vigilance report, which showed that the petitioner had let out 4 vehicles bearing registration Nos.AP35U7798, AP35U7578, AP35Y1229 and AP35Y1238 to APSRTC in Vizianagaram Region for the periods 2014-15 to 2016-17 but had not registered himself under the A.P. Value Added Tax Act, 2005 (for short, 'the VAT Act') and submitted hire charges turnover, a show-cause notice proposing levy of tax at the rate of 1% of the hire charges for the aforesaid years by treating the dealer a....
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.....V.Sri Devi, learned counsel for the petitioner, assailing the aforesaid order submits that the initial show-cause notice had been issued to levy tax at the rate of 1% on the hire charges upon the petitioner. After expiry of the limitation period, the assessing authority, without any factual foundation of wilful evasion of tax, invoked Section 21(5) of the VAT Act and raised a claim of tax at the rate of 14.5%. She contends the revised show-cause notice is barred by limitation as there is no factual foundation averred therein with regard to wilful evasion of tax a 'condition precedent' for the purpose of invoking Section 21(5) of VAT Act. She also argued that there is no finding in the impugned order with regard to wilful evasion of tax. On....
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.... end of the period for which the assessment is made. Sub-section (5) thereof enlarges the period of limitation to 6 years for making such assessment to 6 years from the date of filing of the return in the event there is wilful evasion of tax. 7. Section 21(5) of the VAT Act reads as follows: "Where any wilful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgment by the authority prescribed within a period of six years of date of filing of the return or the first return relating to such offence." 8. Hence, a finding there is "wilful evasion of tax" is a condition precedent to invoke powers under Section 21(5) of VAT Act. 9. In the present case, the assessing authority initially proce....
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....ld not amount to a wilful evasion of tax unless and until factual averments disclosing wilful evasion of tax are made out in the show-cause notice. Moreover, impugned order is also completely silent on this score. There is no finding that the assessee had wilfully evaded tax. On the other hand, it refers to the representation of the mother of the assessee, who claimed tax at the rate of 1% was paid from 2016 as per direction of the Commissioner, Commercial Taxes. No material to contravene the aforesaid stance has been referred to in the order impugned. Merely by recording non-compliance of statutory provisions namely Section 4(8B) of the VAT Act read with Rule 17A of the Rules, the assessing authority held the dealer was not entitled to a l....