IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FIRST DAY OF MAY TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH and THE HON'BLE MR JUSTICE SANJAY KUMAR WRIT PETITION No.9000 of 2009 Between: Basai Steels (P) Limited A-23/5&6, APIE Balanagar, Hyderabad, Rep. by its Director Mrs. Pushpa Agarwal ..... PETITIONER AND 1 Appellate Deputy Commissioner (CT) Rural Division, Hyderabad 2 Assistant Commissioner (CT) VMU-1 O/o. Deputy Commissioner (CT) Hyderabad (Rural) Division, Vihar,Nampally, Hyderabad. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court may be pleased to issue an appropriate writ order or direction more particularly a writ in the nature of writ of Mandamus declaring the order of the Appellate Deputy Commissioner dt. 31-1-2009 in Appeal Nos. R/7/2008-2009-VAT, R/5/2008- 2009-VAT, R/6/2008-2009-VAT, R/60/2008-2009-VAT, R/59/2008-2009- VAT, as illegal, arbitrary and set aside the same and direct the 1st respondent to dispose the above said appeals on merits after grant of personal hearing to the petitioner or in alternative direct the 1st respondent to dispose of the applications dt. 21-3-2009 in accordance with law. Counsel for the Petitioner:MR.M.S.RAMCHANDRA RAO Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MR JUSTICE V.ESWARAIAH and THE HON'BLE MR JUSTICE SANJAY KUMAR WRIT PETITION No.9000 of 2009 ORDER: (per the Hon’ble Sri Justice Sanjay Kumar) The petitioner company, being aggrieved by the orders of the Assistant Commissioner (CT) VMU-I, Hyderabad, the 2nd respondent, dated 14-03- 2008 under the APVAT Act, 2005, for the assessment years 2005-06, 2006- 07 and 2007-08 and the orders dated 28-08-2008 levying penalty for the assessment years 2006-07 and 2007-08, filed appeals before the Appellate Deputy Commissioner (CT), Rural Division, Hyderabad, 1st respondent. Pending disposal of the appeals, the petitioner company paid 50% of the disputed tax pursuant to the order passed by this court in W.P.No.7236 of 2008 and batch. While so, the appeals were dismissed by the 1st respondent by orders dated 31-01-2009 without hearing the petitioner. The petitioner company filed applications dated 21-03-2009 seeking recall of the ex-parte orders dated 31-01-2009 so that it may be given an opportunity of being heard on merits. However, the said applications were also rejected by the 1st respondent by orders dated 21-03-2009. Hence, this writ petition. Sri S.R.Ashok, learned Senior Counsel appearing on behalf of Sri M.S.Ramachandra Rao, learned counsel for the petitioner company, pointed out that 50% of the disputed amount of tax had already been paid pursuant to the order of this court in W.P.No.7236 of 2008 and batch. Learned Senior Counsel submitted that the petitioner company was unable to participate in the appeal proceedings on 31-01-2009 owing to the fact that the grand child of the Managing Director of the Company was suffering from a serious ailment and as the petitioner company comprises the family members of Sri Gopal Agarwal, the Managing Director, they could not take steps to see that the petitioner company was properly represented before the appellate authority on that date. Learned counsel submitted that the order of the appellate authority rejecting the applications filed by the petitioner company seeking recall of the ex-parte orders is not valid and proper being in violation of the principles of natural justice. Having considered the matter, we are of the opinion that the petitioner company deserves an opportunity of being heard as substantial amounts are involved in the appeals and it would be voilative of the principles of natural justice to shut out the petitioner company in the appeals and confirm the assessment proceedings by way of ex-parte orders. We therefore set aside the ex-parte orders dated 31-01-2009 passed by the 1st respondent dismissing the petitioner company’s appeals and direct the 1st respondent appellate authority to hear the matter afresh, after giving due notice and an opportunity of hearing to the petitioner company, subject to the condition that the petitioner company deposits a sum of Rs.15,00,000/- (Rupees fifteen lakhs only) with the 2nd respondent within six weeks from the date of receipt of a copy of this order. Any amounts paid by the petitioner company over and above 50% of the disputed tax shall be given due credit while computing the amounts payable under this order. The writ petition is accordingly allowed. There shall be no order as to costs. ________________ V.ESWARAIAH, J __________________ SANJAY KUMAR, J Date : 01-05-2009 Prv