2007 (7) TMI 578 - HC - VAT and Sales Tax

Summary

Issues:
1. Validity of the attachment order dated July 6, 2007.
2. Challenge to the order imposing penalty dated June 29, 2007.

Analysis:
1. Validity of the attachment order:
The petitioner contested the attachment of amounts in various banks, arguing that the order was a consequence of the penalty imposed on him. The petitioner contended that there was no power for authorities to attach amounts after an assessment or penalty order. The court referred to section 27(2)(a) of the Andhra Pradesh Value Added Tax Act, 2005, which allows attachment during the pendency of assessment or reassessment proceedings for protecting revenue interests. However, as of July 6, 2007, there were no pending assessment, reassessment, or penalty proceedings. The court clarified that section 29 of the Act pertains to recoveries after assessment, not to pre-assessment attachments. Therefore, the court held the attachment order invalid and unsustainable.

2. Challenge to the order imposing penalty:
The petitioner raised concerns that his objections were not considered, his request for a personal hearing was denied, and the order did not address his request for a hearing. The court acknowledged these issues but suggested that they could be addressed by the appellate authority, as the petitioner had the right to appeal the penalty order. Consequently, the court partially allowed the writ petition, granting the petitioner the liberty to appeal against the penalty order. The court emphasized that the appellate authority could review the petitioner's objections and the request for a personal hearing during the appeal process, ensuring due consideration of the petitioner's concerns.