9911796707
TMI Blog2025 (1) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel contends that this is not permissible. However, he has not placed any provisions of law, which prohibits the passing of such a combined order. It must be noted that this order has been passed, after the petitioner was put on notice about the proposal to cancel the L1 certificate and also the proposal to tax the turnover under section 5F of the Act. In such a situation there are no reason to hold the impugned order invalid, merely because it is a combined order. Rule 6-B (2) (iii) provides for cancellation of the permission granted for composition of tax, under Section 5-G, if there has been suppression of turnover by the dealer or the dealer fails to pay tax within the specified time or if the dealer contravenes any provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be appropriate that this issue is considered again by the Assessing Authority. Petition disposed off by way of remand. - HON BLE MR. JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE AND HON BLE MR. JUSTICE R. RAGHUNANDAN RAO For the Petitioner: Mr. G. Narendra Chetty. For respondent: Government Pleader for Commercial Taxes. ORDER PER (HON BLE SRI JUSTICE R.RAGHUNANDAN RAO) Heard Mr. G. Narendra Chetty, learned counsel for the petitioner and the learned Government Pleader for Commercial Taxes, appearing for the respondent. 2. The petitioner is a dealer, registered under the A.P.G.S.T Act, 1957. It was involved in the execution of works Contacts, which was taxable under Section 5-F of the A.P.G.S.T Act 1957, for the assessment year 2002-2003. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay tax @ Rs. 4/- per sq. foot of the declared built up area. The Assessing Authority issued a show cause notice, dated 06.07.2004, accepting the turnovers furnished by the petitioner, but proposed to adopt 1,04,814 sq. feet as the built up area. This was accepted by the petitioner who did not file any objections. The Assessing Authority, however issued two show cause notices, dated 21.09.2004, proposing to cancel the L1 certificate issued in favour of the petitioner on the ground that the monthly returns for the months of April 2002 to November 2002 were filed in one go, on 13.12.2002, and that the returns for the month of March, 2003 was filed on 10.04.2003 while it should have been filed on 07.04.2003 and the same amounted to contrav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the delay in filing of the returns was sufficient to cancel the L1 certificate and calculated the tax payable on the turnover of the petitioner @ 8%, after granting a standard deduction of 35% from the total turnover. The deduction of 35% was given on the ground that the books of account had not been placed before the Assessing Authority and consequently standard deduction permissible under the Rules was being given. 6. Aggrieved by this assessment order, the petitioner had approached this Court, by way of the present writ petition. The petitioner apart from assailing the impugned assessment order, dated 20.03.2006, has also chosen to challenge Rule 6-B (2) (iii) of the A.P.G.S.T Act on the ground that the same is contrary u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sub-section (1) does not apply. (3) Every dealer who elects to pay tax under sub- section (1) shall apply in the prescribed form to the assessing authority to be permitted to pay the amount of tax under sub-section (1), and on being so permitted, in the prescribed form, he shall pay tax as specified under Section 13 and 15 of the Act. (4) [Nothing contained in sub-section (1) shall apply to a dealer, who purchases or receives goods from outside, the State for the purpose of using such goods in the execution of works contract.] [Added by Act No. 25 of 2002, dated 21.12.2002.] Rule 6-B (2) (iii) of the A.P.G.S.T Rules reads as follows: Rule 6-B: Composition of tax in the case of dealers executing works contracts: (2) (iii) The assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a combined order. 9. Rule 6-B (2) (iii) provides for cancellation of the permission granted for composition of tax, under Section 5-G, if there has been suppression of turnover by the dealer or the dealer fails to pay tax within the specified time or if the dealer contravenes any provision or any of the Rules. This Court does not find any reason to hold that these provisions are in violation of Section 5-G. A perusal of Section 5-G would show that the said provision itself provides that such composition would be granted subject to such conditions as may be prescribed. In this case, the prescription of such conditions is set out in Rule 6-B (2) (iii). The provision of Section 5-G itself empowers the rule making authority to stipulate condi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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