THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN W.P.NO.12272 OF 2009 17-09-2009 BETWEEN; ITC Limited, represented by its Executive Vice President( Finance) Raja Parasuram, Hyderabad. ...Petitioner vs. The Assistant Commissioner of Commercial Taxes, LTU, Warangal ...Respondent THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN W.P.NO.12272 OF 2009 ORAL ORDER: (Per GR,J) Heard the learned counsel for the petitioner and the learne Special Standing Counsel for the Commercial Taxes The petitioner company is a registered dealer under the A.P.VA Act,2005 ( for short “the Act”) and the CST Act,1956 as well. Th respondent issued two notices of assessment dated 12.05.2009 unde Rule 25 of the A.P. VAT Rules,2005; the first notice covering the perio from 01-04-2005 to 31-03-2006 and the second the period 01-04-2006 t 31-01-2009 alleging that the petitioner had claimed excess input tax cred for the aforesaid periods, which are proposed to be withdrawn. Reliance i placed for this allegation of unjustified claim of input tax credit by th petitioner, on certain findings apparently furnished by the Enforcemen officials of the department. On the petitioner’s application for furnishing th report of the Enforcement officials, the respondent by the endorsemen dated 01-06-2009 declined to furnish the report on the ground that th report by the Enforcement officials is intended for internal circulation an the petitioner was asked to file objections to the proposed turnover i Form.305-A, within the stipulated time, failing which the assessment woul be proceeded with as proposed. Eventually by the order impugned dated 26-05-2009 of the responden the assessment was made as proposed and on the basis of th Enforcement report recording that input tax credit claimed by the petitione was in excess in what the petitioner is eligible, due to non or imprope application of the formula prescribed i.e., A X B/C as the petitioner ha huge transactions of stock transfers to its units in other States. The order of assessment dated 26-05-2009 is challenged inter alia o the ground that it was passed without a fair and reasonable notice an opportunity to the petitioner as to the contents of the report of th Enforcement department, an allegation whose factual basis is concede by the respondent in the oral submission of the learned Specia Government Pleader. As the petitioner was denied reasonable opportunity to respond to an file objections after communication of the report of the Enforcemen officials, which is the basis for the rejection of the petitioner’s claim fo input tax credit, the order of assessment dated 26-05-2009 cannot b sustained and is accordingly set aside. The matter is remanded to th respondent for enabling passing of a fresh order of assessment after th petitioner is furnished a copy of the report of the Enforcement officials. Th petitioner shall be afforded a reasonable opportunity to submit it objections within the time to be stipulated in a notice to be issued. Th fresh order of assessment shall be passed thereafter. The writ petition is disposed of as above. No order as to costs. ______________ GODA RAGHURAM,J __________________ RAMESH RANGANATHAN,J 17th SEPTEMBER 2009. Note: Issue CC as soon as Possible. (B/O) TSNR