IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 05.07.2023 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.No.21343 of 2022 and W.M.P.Nos.20341 & 20343 of 2022 HBL Power Systems Limited, (Represented by its Branch Manager S.Ramajayam), TCR Niveraas Plaza, 4^th Floor, A,205/325, Poonamallee High Road, Aminjikkarai, Chennai – 600 029. .. Petitioner Vs.

The Assistant Commissioner (ST), Ayanavaram Assessment Circle, F-50, Anna Nagar East, Chennai – 600 102. .. Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the records on the file of the respondent herein in TIN/33761346664/2015-16 dated 30.06.2022 and quash the same.

For Petitioner : Mr.K.A.Parthasarathy For Respondent : Mrs.K.Vasanthamala Government Advocate

O R D E R

The petitioner is aggrieved by the impugned order dated

30.06.2022 passed by the respondent for the assessment year 2015-2016. By the impugned order, the respondent has determined a sum of Rs.71,26,907.00 as tax due from the petitioner and has imposed penalty of Rs.1,06,90,360.00 under Section 27 (3) (C) of the TNVAT Act, 2006.

Operative portion of the impugned order reads as follows:

“A notice was issued to the dealer on 16.06.2022 and requested to file the written objections if any to the above notices, within 7 days from the receipt of the notice, failing which order will be passed as proposed. On receipt of the notice, the dealer did not file any credible records. It is obviously known that no vital records to file. If failure to file the objections and it is confirm the proposal for the year 2015-16 under TNVAT Act 2006 as detailed below.

Total turnover determined Rs.5,78,77,613.00 Total taxable determined Rs.5,78,77,613.00 @ 14.5%

Total Tax due Rs.71,26,907.00 Total paid Rs. NIL -----------------------------

Balance Rs.71,26,907.00 -----------------------------

A notice inform 'O' is issued Penalty due under section 27 (3) (C) of the TNVAT Act

2006. It is wilful and non-disclosed the turnover and tax not paid in the monthly returns and attract penalty on the tax due at 150%.

Penalty due Rs.1,06,90,360.00 Penalty paid Rs. NIL ---------------------------

Balance Rs.1,06,90,360.00 ---------------------------

A notice inform 'RR' is issued. Assistant Commissioner (ST), Ayanavaram Assessment Circle.”

2.The specific case of the petitioner is that the petitioner is a registered dealer in Tamil Nadu and is engaged in sale of batteries manufactured at the petitioner's factory from the State of Andhra Pradesh and Telangana State. It is submitted that the respondent had entertained a doubt that the petitioner had imported the goods for a sum of Rs.5,26,16,012/- during the period in dispute and effected local sale and not paid appropriate tax.

3.The petitioner was therefore, issued with a show cause notice dated 28.06.2017, to which the petitioner had replied on 24.07.2017, stating that the petitioner does not import any goods for trading purpose. It was further stated that the inputs and consumables are imported not only from Chennai Port, but also from other Ports in the country for the petitioner factories located in the Telangana State and State of Andhra Pradesh and that only manufactured batteries were sold by the petitioner in Tamil Nadu and therefore, there was no basis to confirm the demand proposed for the show cause notice dated 28.06.2017.

4.It is submitted that the impugned demand was not sustainable.

However, after receiving reply dated 24.07.2017 and 24.08.2017 of the petitioner, the respondent has issued second show cause notice dated 14.12.2020, to which again the petitioner has replied on 12.01.2021. Despite the same, the respondent has proceeded to pass the impugned order. In the impugned order, reference was made to a notice dated

16.06.2022, which however was not received by the petitioner.

5.It is submitted that without furnishing the particulars, the respondent have confirmed the demand. It is submitted that the impugned order also suff