Madras High Court
Sri Vaigai Glass House & Fabricators vs The Deputy Commercial Tax Officer (St) on 1 April, 2024
Author: Senthilkumar Ramamoorthy
Bench: Senthilkumar Ramamoorthy
W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 01.04.2024
CORAM:
THE HONOURABLE MR. JUSTICE SENTHILKUMAR RAMAMOORTHY
W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024 and
W.M.P.Nos.9693, 9695, 9703, 9705, 9709, 9711,
9715, 9716, 9718 & 9720 of 2024
In all WPs.
Sri Vaigai Glass House & Fabricators,
Represented by its Managing Partner,
No.700, Near KVB Bank,
Tirupur Road, Kangayam,
Tiruppur : 638 701. ...Petitioner
Vs.
The Deputy Commercial Tax Officer (ST),
Office of the Deputy Commercial Tax Officer (ST-1),
Kangayam Assessment Circle,
Kangayam, Karur, Erode,
Tamil Nadu. ... Respondent
Prayer in W.P.No.8684 of 2024: Writ Petition is filed under Article 226
of the Constitution of India to issue a Writ of Certiorari calling for the
records of the impugned order in Ref. No.ZD3303230879281 dated
17.03.2023 under section 74 of the CGST/TNGST Act, 2017 and
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
uploaded along with the summary of the order in DRC07 for the
Financial Year 2017-2018 from the files of the respondent and quash the
same.
Prayer in W.P.No.8688 of 2024: Writ Petition is filed under Article 226
of the Constitution of India to issue a Writ of Certiorari calling for the
records of the impugned order in Ref. No.ZD330323086113T dated
17.03.2023 under section 74 of the CGST/TNGST Act, 2017 and
uploaded along with the summary of the order in DRC07 for the
Financial Year 2018-2019 from the files of the respondent and quash the
same.
Prayer in W.P.No.8695 of 2024: Writ Petition is filed under Article 226
of the Constitution of India to issue a Writ of Certiorari calling for the
records of the impugned order in Ref. No.ZD330323088083M dated
17.03.2023 under Section 161 read with Section 74 of the CGST/TNGST
Act, 2017 and uploaded the same along with DRC-08 for the Financial
Year 2018-2019 from the files of the respondent and quash the same.
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
Prayer in W.P.No.8700 of 2024: Writ Petition is filed under Article 226
of the Constitution of India to issue a Writ of Certiorari calling for the
records of the impugned order in Ref. No.ZD3303230856396 dated
17.03.2023 under section 74 of the CGST/TNGST Act, 2017 and
uploaded along with the summary of the order in DRC07 for the
Financial Year 2019-2020 from the files of the respondent and quash the
same.
Prayer in W.P.No.8703 of 2024: Writ Petition is filed under Article 226
of the Constitution of India to issue a Writ of Certiorari calling for the
records of the impugned order in Ref. No.ZD330323088166G dated
17.03.2023 under Section 74 of the CGST/TNGST Act, 2017 and
uploaded along with the summary of the order in DRC07 for the
Financial Year 2020-2021 from the files of the respondent and quash the
same.
In all WPs.
For Petitioner : Ms.Aparna Nandakumar
For Respondents : Mr.V.Prashanth Kiran,
Government Advocate (T)
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
COMMON ORDER
These five writ petitions pertain to assessment orders relating to
assessment periods 2017-2018, 2018-2019, 2019-2020 and 2020-2021.
2. The petitioner asserts that he was a registered person engaged in
business relating to glasswares and glass fabricating materials. He had
opted for the composition scheme under Section 10 of applicable GST
enactments. In assessment periods 2017-2018 and 2018-2019, the
petitioner asserts that he had filed returns. With effect from 06.11.2019,
the GST registration of the petitioner was cancelled. In view of such
cancellation, the petitioner asserts that he was unaware of proceedings
relating to assessment for any of the four above mentioned assessment
periods, since all notices and orders relating thereto were uploaded on the
GST portal but not communicated to the petitioner through any other
mode. The present writ petitions were filed in the above facts and
circumstances.
3. Learned counsel for the petitioner referred to the order of
cancellation dated 06.11.2019. She submitted that the petitioner was not
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
monitoring the portal in view of such cancellation. She also pointed out
that Notification No.10/2019-Central Tax, dated 07.03.2019 (Notification
No.10/2019) was issued exempting persons, who are engaged in the
exclusive supply of goods and whose aggregate turnover in a financial
year does not exceed Rs.40 lakhs, from obtaining registration. By
pointing out that the petitioner's turnover did not exceed Rs.40 lakhs in
assessment periods 2019-2020 and 2020-2021, learned counsel submitted
that it was not necessary for the petitioner to obtain registration. Since
the impugned orders were issued without providing a reasonable
opportunity to the petitioner, learned counsel makes a request that these
matters be remanded for reconsideration.
4. Mr.V.Prashanth Kiran, learned Government Advocate, accepts
notice for the respondent. He submits that even upon cancellation of
registration, it is incumbent on the formerly registered person to monitor
the GST portal from time to time. By referring to the impugned order in
respect of the assessment period 2017-2018, he points out that the
petitioner's outward supplies were assessed at Rs.50,77,875/-. He also
submits that the assessment was undertaken on best judgment basis
because the petitioner failed to participate in proceedings.
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
5. On account of the cancellation of the petitioner's GST
registration on 06.11.2019, the petitioner would have had little reason to
monitor the GST portal on an ongoing basis. The orders impugned herein
indicates clearly that such orders were issued without hearing the
petitioner.
6. As regards assessment periods 2017-2018 and 2018-2019, the
exemption under Notification No.10/2019 was not available. Learned
counsel for the petitioner submits that the petitioner agrees to remit 5%
of the disputed tax demand as a condition for remand in assessment years
2017-2018 and 2018-2019. As regards the period subsequent thereto, she
submits that the petitioner was entitled to exemption under Notification
No.10/2019.
7. By taking into account the cancellation of registration with
effect from 06.11.2019 and Notification No.10/2019, it is just and
appropriate that the petitioner be provided an opportunity to contest the
tax demand pertaining to the respective assessment period, albeit by
putting the petitioner on terms with regard to assessment periods 2017-
2018 and 2018-2019.
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W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
8. Therefore, the impugned assessment orders are quashed subject
to the condition that the petitioner remits 5% of the disputed tax demand
as regards assessment years 2017-2018 and 2018-2019 within a period of
two weeks from the date of receipt of a copy of this order. The petitioner
is also permitted to submit a reply to the respective show cause notice
within the aforesaid period of two weeks. Upon receipt of the petitioner's
reply and upon being satisfied that 5% of the disputed tax demand, in the
aggregate, in respect of the assessment periods 2017-2018 and
2018-2019 were received, the respondent is directed to provide a
reasonable opportunity to the petitioner, including a personal hearing,
and thereafter issue fresh assessment orders within a period of two
months from the date of receipt of the petitioner's reply.
9. These writ petitions are disposed of on the above terms without
any order as to costs. Consequently, connected miscellaneous petitions
are closed.
01.04.2024
Index : Yes / No
Internet : Yes / No
Neutral Citation : Yes / No
kj
https://www.mhc.tn.gov.in/judis
W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024
SENTHILKUMAR RAMAMOORTHY,J.
Kj
To
The Deputy Commercial Tax Officer (ST),
Office of the Deputy Commercial Tax Officer (ST-1),
Kangayam Assessment Circle,
Kangayam, Karur, Erode,
Tamil Nadu.
W.P.Nos.8684, 8688, 8695, 8700 & 8703 of 2024 and
W.M.P.Nos.9693, 9695, 9703, 9705, 9709, 9711,
9715, 9716, 9718 & 9720 of 2024
01.04.2024
https://www.mhc.tn.gov.in/judis
