Madras High Court
Tvl.Bharath Paper Company vs The Deputy State Tax Officer-I on 21 November, 2024
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.33920 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 21.11.2024
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P.No.33920 of 2024
and
W.M.P.Nos.36735, 36738 and 36739 of 2024
Tvl.Bharath Paper Company
Rep. by its proprietor R.Bharath,
11, Anderson Street,
George Town,
Chennai, Tamil Nadu 600 001. ..Petitioner
Vs.
1.The Deputy State Tax Officer-I,
Loansquare Assessment Circle,
Integrated Buildings for Commercial Taxes Department,
Chennai North Division,
No.32, Elephant Gate Bridge Road,
Chennai 600 003.
2.The Assistant Commissioner (State Tax),
Loansquare Assessment Circle,
Integrated Buildings for Commercial Taxes Department,
Chennai North Division,
No.32, Elephant Gate Bridge Road,
Chennai 600 003. ..Respondents
1/7
https://www.mhc.tn.gov.in/judis
W.P.No.33920 of 2024
PRAYER: Writ Petition filed under Article 226 of the Constitution of India,
praying to issue Writ of Certiorari calling for the records of the first respondent in
Form GST DRC-07 with Reference No. ZD331223118625Q dated 16.12.2023
passed under section 73 of the TNGST Act, 2017 and quash the same as illegal,
devoid of merits and against principles of natural justice.
For Petitioner : Mr.M.Varun Pandian
For Respondents : Mr.C.Harsha Raj,
Additional Government Pleader.
ORDER
The present writ petition is filed challenging the impugned order passed by
the first respondent dated 16.12.2023 relating to the assessment year 2017-18.
2. The petitioner is engaged in retail business of trading in paper and paper
boards, printed books, printed or illustrated postcards or illustrated postcards,
wedding cards and is a registered dealer under the Goods and Services Act, 2017.
During the relevant period, the petitioner filed its return and paid the appropriate
taxes. However, during the scrutiny of the petitioner's return, it was found that
there was excess input tax credit availed as compared to RCM. Subsequently, a
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notice was issued to the petitioner in Form GST ASMT 10 on 31.08.2023,
followed by a Show Cause Notice dated 26.09.2023. A personal hearing was
offered on 18.11.2023. However, the petitioner had neither filed its reply nor
availed personal hearing. Hence, the impugned order came to be passed,
confirming the proposal.
3. The impugned order is challenged on the premise that neither the show
cause notices nor the impugned order of assessment have been served by tendering
to the petitioner or by registered post, instead it was uploaded in the common
portal. It was further submitted that the petitioner was unable to access the
common portal and thus was unable to participate in the adjudication proceedings.
4. It is submitted by the learned counsel for the petitioner that if the
petitioner is provided with an opportunity, they would be able to explain the
alleged discrepancies. The learned counsel for the petitioner would then place
reliance upon the recent judgment of this Court in the case of
M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST
& Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024. It was
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further submitted that the petitioner is ready and willing to pay 25% of the
disputed tax and that they may be granted one final opportunity before the
adjudicating authority to put forth their objections to the proposal. It is further
submitted that subsequent to the passing of the impugned order, the petitioner has
remitted amounts in excess of the admitted tax and his only request is that the same
may be adjusted towards 25% of the disputed tax. It is further submitted that there
is bank attachment and the same may be lifted, to which, the learned Additional
Government Pleader appearing for the respondents does not have any serious
objection.
5. In view thereof, the impugned order is set aside and the petitioner shall
deposit 25% of the disputed tax within a period of four (4) weeks from the date of
receipt of a copy of this order. The respondent authority shall take into account the
amount remitted by the petitioner in excess of the admitted tax, while reckoning
25% of the disputed tax. On complying with the above condition, the impugned
order of assessment shall be treated as show cause notice and the petitioner shall
submit its objections within a period of four (4) weeks from the date of receipt of a
copy of this order along with supporting documents/material. If any such
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objections are filed, the same shall be considered by the respondent and orders
shall be passed in accordance with law after affording a reasonable opportunity of
hearing to the petitioner. If the above deposit is not paid or objections are not filed
within the stipulated period, i.e., two weeks and four weeks respectively from the
date of receipt of a copy of this order, the impugned order of assessment shall
stand restored. It was submitted that pursuant to the impugned order of assessment,
recovery proceedings were initiated and bank accounts have been attached. In
view of the order passed herein, the bank attachment shall be lifted forthwith on
complying with the above condition i.e., payment of 25% of disputed taxes within
a period of two weeks from the date of receipt of a copy of this order.
6. Accordingly, the Writ Petition stands disposed of. There shall be no order
as to costs. Consequently, connected miscellaneous petitions are closed.
21.11.2024
Speaking (or) Non Speaking Order
Neutral Citation: Yes/No
shk
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MOHAMMED SHAFFIQ, J.
shk
To
1.The Deputy State Tax Officer-I,
Loansquare Assessment Circle,
Integrated Buildings for Commercial Taxes Department,
Chennai North Division,
No.32, Elephant Gate Bridge Road,
Chennai 600 003.
2.The Assistant Commissioner (State Tax),
Loansquare Assessment Circle,
Integrated Buildings for Commercial Taxes Department,
Chennai North Division,
No.32, Elephant Gate Bridge Road,
Chennai 600 003.
and
W.M.P.Nos.36735, 36738 and 36739 of 2024
https://www.mhc.tn.gov.in/judis
21.11.2024
https://www.mhc.tn.gov.in/judis
