Madras High Court
Tvl.Sri Krishna Distributors vs The Deputy Commercial Tax Officer -Ii ... on 3 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.39648 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :03.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.39648 of 2024
and
W.M.P.Nos.42936 and 42938 of 2024
Tvl.Sri Krishna Distributors,
Rep. By its partner Rameshwar Seervi,
Old S.No.23/1A1A, New S.No.23/22 Part & S.No.23/21,
Seevaram Village Plot No.4 and Plot No.5,
Sholinganallur Taluk, Perungudi, Chenni 600 096. ... Petitioner
Vs.
The Deputy Commercial Tax Officer -II (ST),
Sholinganallur Assessment Circle, 2nd Floor, Room No.241,
The Integrated Building for Commercial Taxes and
Registration Department, (South Tower),
Nandanam, Chennai 600 035. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying
to issue a Writ of Certiorari to call for the records of the respondent in order dated
16.08.2024 in GSTN:33ADFS9473NIZZ/2019-20 and quash the same as illegal,
arbitrary and in violation of principle of natural justice.
For Petitioner : M/s.C.Rekhakumari
For Respondent : Mrs.Vasanthamala,
Government Advocate.
https://www.mhc.tn.gov.in/judis
1/7
W.P.No.39648 of 2024
ORDER
The present writ petition is filed challenging the impugned order passed by the
respondent dated 16.08.2024 relating to the assessment year 2019-20.
2.The petitioner is a dealer in sanitary hardware items and is registered under
the Goods and Services Tax Act, 2017. During the relevant period of 2019-20, the
petitioner filed its returns and paid the appropriate taxes. However, during the
scrutiny of the petitioner's monthly return, the following discrepancies were noticed
viz.,
i. Excess Claim of Input Tax Credit
ii. Under declaration of Ineligible ITC
2.1 Pursuant thereto, a Show Cause Notice in Form GST DRC-01 was issued
on 25.05.2024, followed by reminders on 19.07.2024 and 10.08.2024. However, the
petitioner had neither filed its reply nor availed the opportunity for a 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 has been served on the petitioner by
tender or sending it by RPAD, instead it had been uploaded under the View
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Additional Notices column in the GST Portal, thereby, the petitioner was unaware of
the initiated proceedings and was thus 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 Sree Manoj International Vs.
Deputy State Tax Officer in W.P.No.10977 of 2024 dated 25.04.2024, to submit that
this court has remanded the matter back in similar circumstances subject to payment
of 10% of the disputed taxes. It was further submitted that the petitioner is ready and
willing to pay 10% 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 submitted that there is bank attachment and the same may be lifted to
which the learned learned Government Advocate appearing for the respondent does
not have any serious objection.
5. By consent of both parties, the writ petition stands disposed of on the
following terms:
a) The impugned order dated 16.08.2024 is set aside.
https://www.mhc.tn.gov.in/judis
b) The petitioner shall deposit 10% of the disputed taxes as admitted by the
learned counsel for the petitioner and the respondent, within a period of four weeks
from the date of receipt of a copy of this order.
c) If any amount has been recovered or paid out of the disputed taxes,
including by way of pre-deposit in appeal, the same would be reduced/adjusted,
from/towards the 10% of disputed taxes directed to be paid. The assessing authority
shall then intimate the balance amount out of 10% of disputed taxes to be paid, if
any, within a period of one week from the date of receipt of a copy of this order. The
petitioner shall deposit such remaining sum within a period of three weeks from such
intimation.
d) The entire exercise of verification of payment, if any, intimation of the
balance sums, if any, to be paid for compliance with the direction of payment of 10%
of the disputed taxes, after deducting the sums already paid and payment by the
petitioner of the balance amount, if any, on intimation in compliance with the above
direction shall be completed within a period of four weeks from the date of receipt of
copy of this order.
e) Failure to comply with the above condition viz., payment of 10% of
disputed taxes within the stipulated period i.e., four weeks from the date of receipt of
a copy of this order shall result in restoration of the impugned order.
f) If there is any recovery by way of attachment of Bank account or garnishee
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proceedings, the same shall be lifted /withdrawn on complying with the above
condition viz., payment of 10% of the disputed taxes.
g) 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. It is made
clear that if the above conditions viz., 10% of disputed taxes is not complied or
objections are not filed within the stipulated period, four weeks respectively from the
date of receipt of a copy of this order, the impugned order of assessment shall stand
restored.
6. There shall be no order as to costs. Consequently, connected miscellaneous
petitions are closed.
03.01.2025
Speaking (or) Non Speaking Order
Index : Yes/ No
Neutral Citation: Yes/No
shk
https://www.mhc.tn.gov.in/judis
To:
The Deputy Commercial Tax Officer -II (ST),
Sholinganallur Assessment Circle, 2nd Floor, Room No.241,
The Integrated Building for Commercial Taxes and
Registration Department, (South Tower),
Nandanam, Chennai 600 035.
https://www.mhc.tn.gov.in/judis
MOHAMMED SHAFFIQ, J.
shk
and
W.M.P.Nos.42936 and 42938 of 2024
03.01.2025
https://www.mhc.tn.gov.in/judis
