Madras High Court

Tvl. Murugesan Kesavan vs The State Tax Officer on 1 March, 2024

Author: Senthilkumar Ramamoorthy

Bench: Senthilkumar Ramamoorthy

                                                           W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED: 01.03.2024

                                                         CORAM

                        THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

                             W.P.Nos.5055, 5059, 5062, 5065, 5068 & 5073 of 2024
                       and W.M.P.Nos.5576, 5579, 5557, 5559, 5565, 5566, 5569, 5571, 5580,
                                         5591, 5592 & 5574 of 2024


                     Tvl. Murugesan Kesavan
                     No.3/137, Perumbakkam Main Road,
                     Medavakkam,
                     Chennai 600 100.                                    ... Petitioner in all WP's
                                                 -vs-

                     The State Tax Officer
                     Medavakkam Assessment Circle
                     Integrated Commercial and Registration Building,
                     Nandanam, Chennai 600 035.               ... Respondent in all WP's



                     PRAYER in W.PNo.5055 of 2024: Writ Petition filed under Article

                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing        reference   GSTIN:    33APQPK6784G1E/2017-18                    dated



                     1/8


https://www.mhc.tn.gov.in/judis
                                                        W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024


                     09.10.2023, passed by the Respondent herein, and quash the same.

                     PRAYER in W.PNo.5059 of 2024: Writ Petition filed under Article

                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing      reference   GSTIN:   33APQPK6784G1E/2018-19                    dated

                     09.10.2023, passed by the Respondent herein, and quash the same.

                     PRAYER in W.PNo.5062 of 2024: Writ Petition filed under Article

                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing      reference   GSTIN:   33APQPK6784G1E/2019-20                    dated

                     09.10.2023, passed by the Respondent herein, and quash the same.

                     PRAYER in W.PNo.5065 of 2024: Writ Petition filed under Article

                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing      reference   GSTIN:   33APQPK6784G1E/2020-21                    dated

                     09.10.2023, passed by the Respondent herein, and quash the same.

                     PRAYER in W.PNo.5068 of 2024: Writ Petition filed under Article


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                                                               W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024


                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing          reference    GSTIN:    33APQPK6784G1E/2021-22                     dated

                     09.10.2023, passed by the Respondent herein, and quash the same.

                     PRAYER in W.PNo.5073 of 2024: Writ Petition filed under Article

                     226 of the Constitution of India, pleased to issue a Writ of Certiorari,

                     calling for the records leading to the issuance of assessment order

                     bearing          reference    GSTIN:    33APQPK6784G1E/2022-23                     dated

                     09.10.2023, passed by the Respondent herein, and quash the same.

                                  For Petitioner     : Ms.S.P.Sri Harini
                                  in all WP's          for Mr.R.Prabakaran

                                  For Respondent     : Mr.T.N.C.Kaushik, AGP (T)
                                  in all WP's

                                                        **********
                                                     COMMON ORDER

In these writ petitions, assessment orders in respect of distinct

assessment periods are challenged. The petitioner runs a provision

store and is engaged in the trade of products such as rice, sugar

confectionery, bread and tobacco products. Pursuant to a surprise

https://www.mhc.tn.gov.in/judis W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024

inspection conducted by the intelligence wing officials on 26.09.2022

at the place of business of the petitioner, a statement was recorded.

According to the petitioner, he was coerced to sign the said

statement. Thereafter, an intimation and show cause notice were

received by the petitioner, and the show cause notice was replied to

by the petitioner on 01.06.2023 and 31.08.2023. The impugned orders

were issued in these facts and circumstances.

2. Learned counsel for the petitioner assails the orders

impugned herein on about two grounds. The first ground of

challenge is that the petitioner had filed returns periodically as

mandated by applicable GST enactments, but that the impugned

assessment orders were issued on best judgment basis. By adverting

to Sections 62 and 63 of the Tamil Nadu Goods and Services Tax Act,

2017 (the TNGST Act), learned counsel submits that assessment on

best judgment basis is permissible either if no returns are filed or if

the tax authorities are dealing with an unregistered person. The

https://www.mhc.tn.gov.in/judis W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024

second ground of challenge is that the petitioner enclosed multiple

documents with the reply of 01.06.2023. The returns of the petitioner,

the reply of the petitioner and these documents were disregarded

while recording findings. Learned counsel refers specifically to

internal page 5 of the respective assessment orders in this regard.

3. Mr.T.N.C.Kaushik, learned Additional Government Pleader,

accepts notice for the respondent. He submits that the respondent

admitted liability during the inspection on 26.09.2022.

4. The petitioner expressly asserted that returns were filed for

each of the relevant assessment years. The assessment orders also

record the statement of the petitioner that he filed GST returns on

monthly basis without default. The said assessment orders also refer

to the reply dated 01.06.2023 of the petitioner, and the petitioner has

placed the said reply on record. On perusal thereof, it is clear that the

petitioner has enclosed about seven documents.

https://www.mhc.tn.gov.in/judis W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024

5. In this factual context, in the operative portion of the order,

the assessing officer refers to Section 62 of the TNGST Act and

thereafter records the following findings:

"The taxpayer's contention and verified and found that at the time of Inspection, the taxpayer had admitted the above defect. Now, they cannot go back their own statement. The proprietor has agreed to pay taxes and penalty for buying and selling of illegal trade of tobacco products, which was recorded in sworn statement. It is therefore no alternative except to confirm the proposals. Hence, the proposed addition turnover, tax and penalty are confirmed."

6. The above extract indicates clearly that the tax demand and

penalty were confirmed entirely on the basis of the statement

recorded on 26.09.2022. Prima facie, such statement appears to be

based on the stock position as on that date. Since the impugned

assessment orders did not take into account the returns, the reply ad

the documents annexed thereto, these orders are not sustainable.

https://www.mhc.tn.gov.in/judis W.P.Nos.5055, 5062, 5059, 5065, 5068, 5073 of 2024

7. Hence, the orders impugned herein are quashed and these

matters are remanded for re-consideration. The assessing officer is

directed to provide a reasonable opportunity to the petitioner,

including a personal hearing, and thereafter issue a fresh reasoned

assessment order after taking into account all relevant materials. This