2019 (1) TMI 1920 - HC - VAT and Sales Tax

Requirement of issuance of notice - statutory requirement of a notice before imposing the liability to pay interest - Section 22(2) of Andhra Pradesh Value Added Tax Act, 2005 - HELD THAT - The impugned order is under Section 22(2) of the A.P. VAT Act. Since interest is automatic, the Statute does not stipulate any prior notice. But while framing Rules under the Act, the Government had provided for an opportunity, under Rule 24(4) of the A.P. VAT Rules, 2005. Obviously, the procedure prescribed by Rule 24(4) was not followed. In cases where a larger opportunity is given under the Rules, the same also has to be followed, in order to comply with the principles of natural justice - the writ petition is ordered, directing the petitioner to treat the impugned demand itself as a show cause notice.

Summary

The High Court of Telangana ruled that the dealer under the Andhra Pradesh Value Added Tax Act, 2005, must be given a notice before imposing the liability to pay interest. The court directed the dealer to treat the demand as a show cause notice and file a reply by a specified date. The Assessing Officer may then pass fresh orders.