IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE EIGHTH DAY OF JUNE TWO THOUSAND AND FIVE PRESENT THE HON'BLE MR JUSTICE B. SUDERSHAN REDDY and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 11856 of 2005 Between: M/s. Sri Laxmi Venkateswara Construction Co., a Partnership firm, having its office at 17/9A, G.K. Street, Proddatur, Cuddapah District, represented by its Partner, Sri K. Rajagopal Reddy ..... PETITIONER AND The Commercial Tax Officer-I, Proddatur, Cuddpah District. .....RESPONDENT 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 grant an order, direction or writ more so in the nature of Writ of certiorary, declaring the action of the respondent in passing exparte assessment orders without affording an opportunity of hearing and granting only a period of three days for filing objections is big handed, arbitrary and violative of principles of natural justice, Section 14 of the APGST Act and Article 14 of the Constitution of India and consequently quash the exparte assessment orders bearing assessment No. 5975/2001-02 dated 30-3-2005 for year 2001-02 and pass such other order or orders. Counsel for the Petitioner : MR.R.RAGHUNANDAN Counsel for the Respondent: SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : ORDER: (per Sri B. Sudershan Reddy, J) Heard the learned counsel for the petitioner and the learned Special Standing Counsel for the Department and at their request, the matter is taken up for final disposal even at the admission stage. Rule nisi. This writ petition is directed against the order dated 30-3-2005 passed by the Commercial Tax Officer-I, Proddatur, the respondent herein determining the tax liability of the petitioner. Admittedly, the show cause notice dated 21-03-2005 was served upon the petitioner only on 23-03-2005. In response to the said show cause notice, the writ petitioner filed written objections on 25-03-2005 within the time granted, in which it is stated that a reasonable opportunity is required to be provided to file effective objections to the proposed assessment and that the three days time granted for filing objections to the show cause notice by no stretch of imagination amounts to granting reasonable opportunity. The petitioner accordingly requested to grant at least 30 days time for filing objections. It is further pleaded that the books of accounts are with its Auditor who is not in the Station. The assessing authority instead of considering the request of the petitioner by granting adequate opportunity decided the matter on the strength of the reply to the show cause notice in which the petitioner did not raise any substantial objection since its request was confined only seeking further extension of time to file the objections. In our considered opinion, the action of the assessing authority in requiring the petitioner to submit its explanation within three days from the date of service of the show cause notice is untenable and unsustainable. The petitioner is entitled for its defence in the matter. It is entitled to produce the records in support of its plea and by no stretch of imagination, grant of three days time to prefer objections can be said to be reasonable. In the circumstances, we have no doubt to hold that the impugned order suffers from arbitrariness. The assessing authority ought to have granted reasonable opportunity enabling the petitioner to file its objections to the show cause notice. The impugned order is liable to be set-aside only on this ground and it is accordingly set aside. However, we may hasten to add that we have not expressed any opinion whatsoever on the merits of the case. Interests of justice would be met by directing the petitioner herein to submit its explanation within ten days from today and the same shall be received by the respondent – Commercial Tax Officer – I, Proddatur for his consideration in accordance with law and appropriate orders shall be passed within four weeks from the date of filing of objections by the petitioner. It shall be open to the petitioner to produce the books of accounts and other records, which shall also be duly taken into consideration by the assessing authority before passing orders. There shall be an order accordingly. The Writ Petition is accordingly disposed of. (B. Sudershan Reddy, J) 08-06-2005 (Ramesh Ranganathan, J) Note: Furnish copy by Monday. B/O ks/bsv To 1. The Commercial Tax Officer-I, Proddatur, Cuddpah District. 2. Two CD copies