IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY FIRST DAY OF DECEMBER TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE GODA RAGHURAM And THE HON'BLE SRI JUSTICE G.V. SEETHAPATHY WRIT PETITION NO : 26225 of 2009 Between: M/s.Goa Antibiotics and Pharmaceuticals Ltd., Regd., OfficeandFactory, Near Tuem, Industrial Estate, pernem, Goa, Branch was at H.No. 6-1-127, Padmarao Nagar, Secunderabad, Rep., by its Asst. Manager (Commercial), Govind Sadashiv Poke, r/o Parvathi Nivas, Poke Wada, Morjm Pernem Goa. ..... PETITIONER AND The Commercial Tax Officer, Musheerabad Circle, Secunderabad Division, Mayurkushal Towers, Abids, Hyderabad and others. .....RESPONDENT(S) THE HON’BLE SRI JUSTICE GODA RAGHURAM And THE HON’BLE SRI JUSTICE G.V. SEETHAPATHY W.P.No. 26225 of 2009 Oral Order: (Per: GR, J) The order of penalty dated 21-08-2009 passed by the 1st respondent determining the penalty at Rs.1,00,000-00 (Rupees one lakh only), is assailed in this writ petition. The petitioner is a manufacturer of drugs and medicines which is having a manufacturing unit at Goa, sells the goods manufactured in several states through its branches including in the State of Andhra Pradesh. The petitioner is registered under the A.P. General Sales Tax Act, 1957 (for short ‘the Act’), as it trades in drugs and medicines, on the rolls of the 1st respondent. The petitioner claims to be a sick industry registered as such under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986). The 1st respondent initially by an order dated 28-10- 2003 levied a penalty of Rs.1,00,000-00 under the Act alleging that the petitioner failed to file statements certified by a Chartered Accountant as required under Rule 17 (5-A) of the Andhra Pradesh General Sales Tax Rules, 1957. The petitioner preferred an appeal before the 3rd respondent inter alia alleging that the 1st respondent failed to afford reasonable opportunity before determining the penalty. The 3rd respondent by the order dated 31-072006 disposed of the appeal and remanded the matter to the 1st respondent directing the 1st respondent to proceed de novo after due process. In the impugned order, the 1st respondent alleges that a notice was issued on 25-06-2009 (after remand) calling upon the petitioner to produce books of accounts, documentary evidence, statutory forms and that the petitioner did not respond to the said notice; and in that view of the matter as it is mandatory for dealers whose turn over exceeds Rs.40,00,000-00 (Rupees forty lakhs only) in a financial year to file a certificate issued by the Chartered Accountant along with the enclosures prescribed under Section 14 (1-B) of the Act, the 1st respondent restored the earlier order dated 28- 10-2003 i.e., confirming the penalty at Rs.1,00,000-00 (Rupees one lakh only). In fact, pursuant to the notice dated 25-06-2009 issued by the 1st respondent after remand, the petitioner responded on 20-07-2009 stating that the Revenue had failed to furnish a copy of panchanama of documents seized on 24-01-2004 despite repeated requests, that it is unable to show the books of accounts, documentary evidence, statutory forms etc., and requesting to send copies of the seized documents so as to enable the petitioner to file the material in support of its claims. This notice though served on the 1st respondent, the 1st respondent proceeded to pass the impugned order of assessment without even reference to the objections lodged by the petitioner. It is fairly stated by Sri A.V. Krishna Kaundiya, the learned Special Standing Counsel for Commercial Taxes that in view of the above, the order of assessment is vitiated and cannot be sustained. In the circumstances above, the order of assessment of penalty dated 21-08-2009 is quashed and the matter is remanded to the 1st respondent for passing orders in accordance with law and after due consideration of the objections, if any, lodged by the petitioner. The writ petition is allowed. No costs. GODA RAGHURAM, J G.V. SEETHAPATHY , J Dated: 21-12-2009 Pvks