IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTIETH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO And THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO.9619 of 2008 Between: M/S. Sri Vijaya Traders, Opp. PWD Grounds, Vijayawada, rep. by its Proprietrix, Smt. C.Vijaya Kumari. ...PETITIONER AND Commercial Tax Officer, Benz Circle, Vijayawada. ...RESPONDENT Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue any appropriate writ of Certiorari and call for the records on the file of the respondent in respect of the penalty order dated: 31.03.2008 passed in G.I.No. 1250/2004-2005 for the a.Y.2004- 2005 and quash the same and issue any either writ order or direction as this Hon'ble Court may be pleased to deem fit and proper. Counsel for the Petitioner: MR.DANTU.SRINIVAS Counsel for the Respondent: GP FOR COMMERCIAL TAX The Court made the following: THE HON'BLE MR JUSTICE B.PRAKASH RAO And THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO.9619 of 2008 ORDER: (Per the Hon’ble Mr Justice B.Prakash Rao) Heard Sri Srinivas Danthu, learned counsel for the petitioner and Sri K.Raji Reddy, learned Special Government Pleader for Tax for the respondent. At their request, the Writ Petition itself is taken up for disposal at the admission stage. The petitioner is a registered dealer doing business in sweets. She filed the present Writ Petition seeking Writ of Certiorari assailing the penalty order dated 31.03.2008 in G.I.No.1250/2004-2005 for the assessment year 2004-05. The case of the petitioner is that there was an inspection of the business premises of the petitioner on 02.08.2004 and on verification of the account books by the Vigilance Officer, it was found that the petitioner has purchased certain items from unregistered dealers, which will become liable to tax under Section 6 of the A.P.G.S.T. Act, 1957. The petitioner neither reported these contingent purchase turnover in monthly returns in Form “A2” filed by the dealer for the period from April, 2004 to July, 2004 nor paid taxes to the Department on these purchases. On that, the respondent issued show cause notice dated 28.02.2008. The petitioner submitted objections dated 03.04.2008. However, the respondent passed orders on 31.03.2008. Learned counsel for the petitioner further submitted that the objections filed by the petitioner are not considered. Even otherwise, the penalty goes far beyond the tax component and as such the same is arbitrary. Hence, the Writ Petition. Having heard on either side and on perusal of the material available on record, we are of the view that apparently, the petitioner’s explanation and objections show as to why he has not paid tax has not come up for consideration. We deem it appropriate that having regard to the facts and circumstances of the case, there is no warrant to levy such heavy penalty of Rs.2,99,355/- (Rupees two lakh ninety nine thousand three hundred and fifty five only) when the tax component comes to only Rs.99,785/- (Rupees ninety nine thousand seven hundred and eighty five only). In the circumstances, the matter needs to be reconsidered afresh on merits. Accordingly, the Writ Petition is allowed and the impugned order dated 31.03.2008 in G.I.No.1250/2004-2005 is set aside. The matter is remitted to the respondent for reconsideration after giving notice and opportunity to the petitioner. No costs. _________________ (B.PRAKASH RAO, J) __________________ (C.Y.SOMAYAJULU, J) 30th April 2008 RRB