2019 (6) TMI 451 - HC - VAT and Sales Tax

Reversal of Input tax credit - petitioner did not respond to summons and petitions - HELD THAT - Petitioner not having responded to the summons as well as the preassessment notice, now cannot have the impugned order assailed after one year in the instant writ petition, more so when one and half years have been subsumed in summons and pre-assessment notice being issued for which admittedly there was no response from the petitioner - The petitioner had not even sent a reply seeking time citing illness. This Court is convinced that there is no ground to interfere qua the impugned order - Petition dismissed - decided against petitioner.

Summary

Issues:
1. Maintainability of the writ petition filed by a partnership firm.
2. Reversal of Input Tax Credit and penalty imposed on the petitioner.
3. Failure of the petitioner to respond to summons and pre-assessment notice.
4. Delay in filing the writ petition challenging the impugned order.

Issue 1:
The High Court addressed the maintainability of the writ petition filed by a partnership firm named Sri Balaji Traders. The Court noted that the firm was not described with the prefix 'M/s,' as is customary for partnership firms. The Court left the question of maintainability open for future consideration in cases where there is a serious contest. The Court emphasized that the partnership firm is a compendious name and proceeded to consider the writ petition on its merits.

Issue 2:
The petitioner, Sri Balaji Traders, was reassessed by the Assistant Commissioner for the assessment year 2011-12, resulting in a specified amount being ordered to be reversed concerning Input Tax Credit (ITC). A penalty was also levied on the petitioner. Despite the petitioner's appeal before the appellate authority, the matter was remitted back to the respondent for further verification. The Court noted that the petitioner did not respond to summons and pre-assessment notices, attributing the lack of response to a partner's illness. The Court highlighted the significant delay in the process, ultimately concluding that there was no ground to interfere with the impugned order.

Issue 3:
The Court observed that the petitioner failed to respond to the summons and pre-assessment notice, which remained undisputed. The petitioner did not provide any supporting documents to justify the lack of response, and the Court found the partner's purported explanation for the delay unacceptable. The Court emphasized that all partners are equally responsible, and the petitioner's failure to engage in the proceedings led to the dismissal of the writ petition.

Issue 4:
Regarding the delay in filing the writ petition challenging the impugned order, the Court noted that the petitioner waited for over a year after the impugned order was passed to file the petition. The Court highlighted the additional time taken for summons and notices, which were not responded to by the petitioner. Considering these factors, the Court found the writ petition bereft of merits and subsequently dismissed it without any costs.

This comprehensive analysis of the judgment provides insights into the legal reasoning and decision-making process followed by the High Court in addressing the issues raised in the case of Sri Balaji Traders.