THE HON'BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.871 of 2010 Date:25.01.2010 Between: M/s. Om Surya Electronics Pvt. Ltd.. ..... PETITIONER AND The Additional Commissioner (CT), Legal, and others. .....RESPONDENTS THE HON'BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.871 of 2010 ORDER: (Per the Hon’ble Sri Justice Goda Raghuram) The order dated 16.12.2009 passed by the Commercial Tax Officer (third respondent) under the Andhra Pradesh Value Added Tax, 2005 (‘the Act’ for brevity) in respect of the assessment year 2005-2006 is assailed in this writ petition, to the extent the order imposes a penalty of Rs.3,33,050/- at 10% on the assessed tax of Rs.33,30,503/-. The petitioner is in the business of electrical and electronic goods and home appliances and is registered on the rolls of the third respondent. For the assessment year 2005-2006, the third respondent passed the order of assessment dated 15.10.2006 under the Act alleging variation in the stock and imposed a consequent tax liability. Aggrieved thereby, the petitioner preferred an appeal before the second respondent, which authority by the order dated 14.03.2008 allowed the appeal and remanded the matter to the third respondent for verifying the books of accounts and determining the turnovers based on the books of accounts. Exercising revisional power, the first respondent by the order dated 10.12.2009 revised the order of the appellate authority dated 14.03.2008 and restored the initial assessment order dated 15.10.2006 passed by the third respondent. Aggrieved by the order of the revisional authority dated 10.12.2009, the petitioner preferred an appeal to the Sales Tax Appellate Tribunal (STAT), which is pending. By the impugned order dated 16.12.2009, the third respondent, consequent on the order of the revisional authority dated 10.12.2009, determined the tax liability as per the revisional order and in addition determined the liability towards penalty at Rs.3,33,050/- on the asserted tax liability of Rs.33,33,503/-. It is fairly conceded by the Special Government Pleader for Commercial Tax – Sri A.V. Krishna Kaundinya, on obtaining instructions from the Revenue, that the penalty was determined without any notice to the petitioner on a proposal to levy penalty. On the above factual basis, the levy of penalty of Rs.3,33,050/- cannot be sustained. The order impugned passed by the third respondent dated 16.12.2009 is accordingly declared invalid insofar as the levy of penalty at Rs.3,33,050/- is concerned. The third respondent, however, is at liberty to pursue the due process of law for levy of penalty. Accordingly, the Writ Petition is allowed at the admission stage. There shall be no order as to costs. ____________________ (GODA RAGHURAM, J) __________________________ (RAMESH RANGANATHAN, J) 25th January, 2010 GHN