2022 (11) TMI 790 - HC - VAT and Sales Tax

Seeking summon of entire records in connection with revisionary proceedings initiated through notices - Section 74A(2) of the Delhi Value Added Tax Act, 2004 - HELD THAT - The notice dated 07.11.2022, which required petitioner s authorised representative to remain present before the concerned officer on 10.11.2022, projects the said notice as a reminder - What is also strange, to which we have not received any explanation as yet, is that the impugned notice dated 25.10.2022 is almost identical to the notice dated 07.10.2022, which was withdrawn by the respondents/revenue as recorded in our order dated 17.10.2022 passed in W.P.(C) 14633/2022. 10.1. According to Mr Nischal, the only change that has taken place is that the impugned notice is now confined to clause (b) of sub-section (1) of Section 74A of the DVAT Act. The earlier notice i.e., notice dated 07.10.2022, triggered both clauses (a) and (b) of Section 74A(1) of the DVAT Act. Since we need to examine the record and have the say of respondents/revenue placed before us, we are inclined to issue formal notice in the matter - Issue notice.

Summary

Issues:
1. Application for summoning records in connection with revisionary proceedings.
2. Writ petition against notice issued under DVAT Act seeking interim relief.
3. Previous writ petition concerning refund directions and subsequent notices issued by revenue.

Issue 1: Application for summoning records in connection with revisionary proceedings

The petitioner filed an application seeking to summon the records of the Special Commissioner and AVATO, Ward-61 in relation to revisionary proceedings initiated through notices dated 07.10.2022 and 25.10.2022. The respondents did not object to producing the records, leading to the application being allowed. The application was disposed of after the respondents' acceptance.

Issue 2: Writ petition against notice issued under DVAT Act seeking interim relief

The writ petition challenged the notice dated 25.10.2022 issued by the respondent under Section 74A(2) of the DVAT Act. The petitioner argued for refund directions based on previous proceedings concerning a refund amounting to Rs. 2,14,70,300/- for FY 2016-2017. The respondents were directed to respond, and further instructions were awaited. The matter was listed for a future date for detailed consideration.

Issue 3: Previous writ petition concerning refund directions and subsequent notices issued by revenue

A previous writ petition (W.P.(C) 12933/2022) involving refund directions was mentioned, where the petitioner sought refund directions for tax demands of all quarters of 2016. The respondents had withdrawn a notice dated 07.10.2022 in a previous proceeding. However, new notices dated 25.10.2022 and 07.11.2022 were issued, leading to confusion as the latter was labeled a "reminder." The court noted similarities between the withdrawn notice and the new notice, prompting a stay on proceedings triggered by the impugned notice. The court directed the filing of counter-affidavits and flagged the case for further hearing.

This judgment addresses multiple issues, including the application for summoning records, a writ petition seeking interim relief against a notice under the DVAT Act, and the complexity arising from previous and subsequent proceedings concerning refund directions. The court's meticulous examination of the facts and legal arguments demonstrates a thorough consideration of the petitioner's grievances and the respondents' actions, ensuring a fair and just resolution through detailed proceedings and directions for further submissions and hearings.