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W.P.(C) 7379/2015 andCMNo. 13592/2015
BHUMIKA ENTERPRISES Petitioner
Through: Mr Vasdev Lalwani, Mr S.K. Kapoor and
Mr Ravi Chandhok
Through: MrAvtar Singh
BHUMIKA ENTERPRISES Peftioner
NESTOR PHARMACEUTICALS LTD. Petitioner
Through: Mr Rajesh Jain, Mr Virag Tiwari and MrR.J.Bhat
Through: Mr Gautam Narayan for R-1
J.P. METALS r, Petitioner MrK.J.Bhat
MrK.J.Bhat
SHIVA ENTERPRISES
2015:DHC:11537-DB
Through: , Mr Rajesh Mahana, Mr Sanjay Sharma, Mr Ramanand Roy andMr Rakesh Kumar
ESQUIRE ELECTROVISION PVT. LTD Petitioner
Through; Mr Rajesh Mahana, Mr Sanjay Sharma, Mr RamanandRoy and Mr RakeshKumar
Through: Mr Satyakam forR-1
GLOBUS METAL TRADING PVT LTD. ..... Petitioner
Through: MrA.K. Babbar andMr Surinder
Through: Mr Avtar Singh
R.D. SALES THROUGH ANIL BANSAL, PARTNER Petitioner
Through: Mr V.K. Sabharwal and Mr Ashok Babbar
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
28.08.2015 The common issue in these writ petitions is with regard to the issuance ofnotices under Section 59(2) of the Delhi Value Added Tax Act, 2004, which were all system generated on 19.06.2015. By virtue of each of the notices in these petitions, the petitioners were required to produce documents relating to the purchases specified therein in the office of the concerned VATO on 26.06.2015. However, without waiting for
26.06.2015, notices for default assessment of tax and interest and penalty have been passed on 19.06.2015 itselfpurportedly by the concerned VATO.
As pointed out by us on an earlier occasion, the two notices read together make out a very depressing story insofar as the functioning of the Department of Trade and
Taxes, Government ofNCT ofDelhi is concerned. We had indicated that, on the one hand, on the same day, a notice for production ofrecords on 26.06.2015 is issued and on the other hand, onthat very day, the default assessment notices were issued inwhich it is stated that the dealer has not filed any reply / satisfactory reply. Apart from the fact that the principles ofnatural justice have been violated, there is also the serious concern that the notices under Section 59(2) of the DVAT Act as well as the default assessment notices have been 'system generated' and have not, in fact, been 'human generated' by the concerned VATOs.
We are now informed by the learned counsel appearing for the Commissioner of
Trade and Taxes, Government of NCT of Delhi that all the default assessment notices issued on 19.06.2015 stand withdrawn whereas the notices issued on 19.06.2015 under
Section 59(2) stand and have been continued through letters issued on 17.07.2015. We are ofthe view that since both the notices under Section 59(2) and the default assessment notices were system generated, both the notices have to go. Consequently, the notices under Section 59(2) of the said Act issued on 19.06.2015 in all these matters stand quashed. The letters issued on 17.07.2015 are also quashed.
The learned counsel appearing on behalf of the petitioners have drawn our attention to acircular dated 29.07.2015 issued by the Additional Commissioner (System) on the subject of'Schedule for system generated orders'. Acopy ofthe said circular is as under:-
"DEPARTMENT OF TRADE AND TAXES, GOVERNMENT OF NCT OF DELHI
VYAPAR BHAWAN, I.P.ESTATE, NEWDELHI - 110002 SYSTEM BRANCH
Sub: Schedule for System Generated Orders Competent authority has decided to carry out the following Assessment /
Penalty Orders as per the givenSchedule:- S.No. Subject ofAssessment Expected date of
Competition of Assessment
ORDER
1 Review of2010-11 central assessment orders who havefiled from-9; however, assessment framed on the basis ofreturns. 25.07.2015
2 Penalty assessment orders for late filing of Return forfinancial year2014-15 (All Quarter). 30.07.2015
3 Mismatch assessment orderforAll Quarter of financial year 2014-15. 16.08.2015
4 Assessment for central forms for financial year 2011-12 based on form-09. 25.08.2015
5 Review of 1"- 4"' quarters (2014-15) 2A/2B mismatch order. 15.09.2015
6 Assessment of T' quarter 2015-16 2A/2B Mismatch on 2015-16. 15.09.2015
7 Penalty assessment orders for late filing of return for financial year 2015-16 of 4* Quarter. 30.09.2015
8 Assessment forcentral form forfinancial year 2012-13 based on form-09 31.10.2015 (GOVIND JAISWAL) Addl. Commissioner (System) No. 4435 Dated29.07.2015 Copy to forwarded to i) PS to Commissioner ii) All Spl. Commissioners/Addl. Commissioners/ Joint Commissoners. iii) Sales Taxes of Bar Association. iv) JD (IT) with the request toupload. v) MD (ICSIL) Administrative Building, Above Post Office, Okhla Industrial Estate, Phase-II, New Delhi - 110020. vi) Director ESPL." This circular has been placed in CM No. 17437/2015 in W.P.(C) 6788/2015. On going through the above circular, we find that a direction has been given for system generated orders. This is clearly in the teeth of our directions given earlier. Consequently, this circular is also quashed. Interestingly, before we part with this discussion ofthis circular, we note that the default assessment orders for the late filing of returns for the financial year 2015-16 for the fourth quarter is given as 30.09.2015 when the fourth quarter itself begins in January 2016. We deprecate such kind of mindless orders and circulars which has been issued by the respondent / Department. As a result all the notices under Section 59(2) issued on 19.06.2015 which were system generated stand quashed. The consequent passed orders thereon are already withdrawn by the letters dated 17.07.2015. The circular dated 29.07.2015 is also quashed. This, however, does not come in the way ofthe Department to issue fresh notices under Section 59(2) after application ofmind by the concerned VATO and inaccordance with law and to take steps pursuant thereto which would also be in accordance with law andwould not be systemgenerated notices or orders withouthumaninterface. The writ petitions stand allowed to the aforesaid extent.
AUGUST 28, 2015 su BADAR DURREZ AHMED, J SANJEEV SACHDEVA, J,^/Of