2021 (5) TMI 600 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy of appeal - Validity of assessment order - Section 31 of the Andhra Pradesh Value Added Tax Act, 2005 - HELD THAT - In the instant case, the Assessing Authority passed the order on 31.03.2020. The Hon ble Apex Court, having regard to the situation which arose due to Covid-19 pandemic, took up the issue suo motu vide Suo Motu Writ Petition (Civil) No.3 of 2020 and initially, in IN RE COGNIZANCE FOR EXTENSION OF LIMITATION 2021 (3) TMI 497 - SC ORDER , the Hon ble Apex Court extended the period of limitation prescribed under the general law or special laws compoundable or not with effect from 15.03.2020 till further orders and the same came to be extended from time to time - It is very much evident from a reading of the above order of the Hon ble Apex Court that the period from 15.03.2020 to 14.03.2021 is liable to be excluded from the period of limitation. Having regard to the provisions of Section 31 of the AP VAT Act, 2005 and in view of the order of the Hon ble Apex Court, this Court deems it appropriate to relegate the petitioner herein to the alternative remedy of appeal to the Appellate Deputy Commissioner - the Writ Petition is disposed of, leaving it open for the petitioner herein to avail the alternative remedy under Section 31 of the AP VAT Act, 2005, within a period of two weeks from the date of receipt of this order.

Summary

Issues:
Challenge to assessment order dated 31.03.2020 by Commercial Tax Officer; Failure to consider damaged Dal aspect in assessment; Availability of alternative remedy of appeal under Section 31 of AP VAT Act, 2005; Impact of Covid-19 pandemic on limitation period; Exclusion of period from 15.03.2020 to 14.03.2021 from limitation period.

Analysis:
The Writ Petition challenges the assessment order dated 31.03.2020 by the Commercial Tax Officer. The petitioner initially appealed before the Appellate Deputy Commissioner, Tirupati, who partially set aside the assessment and remanded the matter to the Primary Authority. Subsequently, the Assessing Authority issued a show cause notice, to which the petitioner responded but faced delays due to the Covid-19 pandemic. The petitioner argued that the Assessing Authority failed to consider the damaged Dal aspect, as directed by the Appellate Authority. On the other hand, the Government Pleader contended that the petitioner has an alternative remedy of appeal under Section 31 of the AP VAT Act, 2005, and a significant portion of the amount has already been paid.

Regarding the impact of Covid-19 on limitation periods, the Hon'ble Apex Court issued directions in a Suo Motu Writ Petition, excluding the period from 15.03.2020 to 14.03.2021 from the calculation of limitation periods. This exclusion applies to various laws, including the AP VAT Act, 2005. In light of these directions and considering the provisions of Section 31 of the Act, the Court decided to relegate the petitioner to the alternative remedy of appeal to the Appellate Deputy Commissioner.

The judgment emphasizes that the period from 15.03.2020 to 14.03.2021 must be excluded from the limitation period calculation. Consequently, the petitioner is given two weeks to avail the alternative remedy of appeal under Section 31 of the AP VAT Act, 2005, with no coercive action against them for four weeks from the judgment date. The Court ordered no costs for the appeal and closed any pending Miscellaneous Petitions in the case.