Madras High Court
M/S.Pc World vs The State Tax Officer on 18 October, 2024
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.(MD).No.24608 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 18.10.2024
CORAM
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
W.P.(MD).No.24608 of 2024
and
W.M.P.(MD).No.20949 of 2024
M/s.PC World,
Represented by its Partner O.Arunachalam. ... Petitioner
Vs.
The State Tax Officer,
O/o. the Joint Commissioner (ST) Intelligence,
Survey Unit, Madurai Division,
Madurai – 20. ...Respondent
Prayer : Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Certiorari, calling for the records in the
impugned order Ref No.ZD33123287325I dated 31.12.2023 issued by the
respondent and quash the same is wholly without jurisdiction and clear
violation of statutory provisions.
For Petitioner : Mr.S.Karunakar
For Respondent : Mr.J.K.Jayaselan
Government Advocate
1/7
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W.P.(MD).No.24608 of 2024
ORDER
The present Writ Petition is filed challenging the impugned order passed
by the respondent dated 31.12.2023 on the premise that the same is made in
violation of principles of natural justice.
2. It is submitted by the learned counsel for the petitioner that the
petitioner is a registered dealer of computer, its parts, software and accessories,
under the GST Act. The petitioner filed its return and paid appropriate taxes
regularly. While so, there was surprise inspection by the Intelligence Wing of
the petitioner's place of business on 10.01.2023 and 11.01.2023. During the
course of inspection, the following defects were noticed:
Sl. Defect Issues GST Demand
No. No.
Issue IGST CGST SGST CESS Total
1 1 Difference in 11090 5882472 5893562
tax liability
between
GSTR3B and
GSTR1
2 4 Exempted 99786 99786 199572
supply
declared in
GSTR9
3 5 Discount 256857 256857 513714
Received
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4 6 Outward 2008 2008 4016
supply
analysis as per
GSTR3B & P
&L
5 7 Freight 2463 2463 4926
expenses
under RCM
6 8 Ineligible 79837 79837 159674
ITC/Blocked
credit
7 9 Purchase 16586 16586 33172
return relevant
ITC reversal
TOTAL 11090 457537 457537 5882472 6808636
3. It is submitted by the learned counsel for the petitioner that the
petitioner was issued with Form GST DRC-01A notice dated 31.08.2023, to
which, the petitioner responded by filing a detailed representation dated
15.09.2023, which is stated to be supported with relevant documentary
evidence. Thereafter, a show cause notice in Form GST DRC-01 dated
28.09.2023 followed by the impugned order dated 31.12.2023 were uploaded in
the common portal. It is submitted that neither the show cause notice nor the
impugned order of assessment has been served on the petitioner by tender or
RPAD, instead it had been uploaded in the common portal under the tab
“Additional Notices/Orders”. It was further submitted that the petitioner was
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unable to access the common portal and thus unable to participate in the
adjudication proceedings. It is thus submitted that if the petitioner is provided
with an opportunity, he would be able to put forth his case.
4. The learned counsel for the petitioner would 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.
5. It was submitted by the learned counsel for the petitioner that with the
introduction of GST, there were several technical glitches in the portal and the
assessees were also taking time to adapt to the e-mechanism and it was only in
view of the same that the petitioner was unable to respond to the above notices
and the order of adjudication. It was further submitted that the petitioner is
ready and willing to pay 25% of the disputed tax and that he may be granted
one final opportunity before the adjudicating authority to put forth their
objections to the proposal, to which the learned Government Advocate
appearing for the respondent does not have any serious objection.
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6. In view thereof, the impugned order is set aside and the petitioner shall
deposit 25% of the disputed tax within a period of two (2) weeks from the date
of receipt of a copy of this order. 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 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 revived.
7. Accordingly, the Writ Petition stands disposed of. There shall be no
order as to costs. Consequently, connected miscellaneous petition stands closed.
18.10.2024
Index : Yes / No
Internet : Yes/ No
Lm
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To
The State Tax Officer,
O/o. the Joint Commissioner (ST) Intelligence,
Survey Unit, Madurai Division,
Madurai – 20.
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MOHAMMED SHAFFIQ, J.
Lm
18.10.2024
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