Madras High Court
The Nilgiri Dairy Farm P.Limited vs The Assessment Commissioner (St) on 22 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
WP No.1728 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22.01.2025
CORAM:
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
WP No.1728 of 2025
and
WMP Nos.1979 and 1980 of 2025
The Nilgiri Dairy Farm P.Limited,
Represented by its Director,
Karan Ket ... Petitioner
versus
The Assessment Commissioner (ST),
Chithode Assessment Circle,
No.38, K.N.K. Road,
Karungalpalyam,
Erode -638003 ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India,
for the issuance of a writ of Certiorari, calling for the records on the files of
the respondent herein in his GSTIN:33AAACT8121A1Z0/2019-20 dated
24.08.2024 to quash the same and pass orders.
For the Petitioner :Mr.R.Kumar
For the Respondent :Mr.G.Nanmaran
Special Government Pleader
1/8
https://www.mhc.tn.gov.in/judis
WP No.1728 of 2025
ORDER
The present writ petition is filed challenging the impugned order
dated 24.08.2024 on the ground of principles of natural justice.
2. The petitioner is a registered dealer under the Goods and Services
Tax Act. During the relevant period, the petitioner had filed its return and
paid appropriate taxes. However, pursuant to an authorization of joint
commissioner in terms of Section 65 of the Act, the petitioner's place of
business was audited. During the course of audit, the following
discrepancies were noticed:
i) Difference in ITC claim between Form GSTR-3B and auto
populated GSTR-2A
ii) Mismatch between GSTR 1 and GSTR 3B
iii)Non payment of Tax under RCM as required under Section 9(3),(4)
of the TNGST Act 2017
iv) Unreconciled payment reported in Form GSTR-9C
v) Credit notes issued treated as taxable supply
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vi) Other income treated as consideration received
vii) Reversal of input tax credit on purchase returns
viii) Ineligible input tax credit proposed under Section 17(5) of
TNGST Act, 2017
2.1. Pursuant thereto, a notice in DRC 01A was issued to the
petitioner. In response to the same, the petitioner filed its reply on
07.03.2024. Thereafter, a show cause notices in DRC 01 was issued to the
petitioner on 30.05.2024 and 29.05.2024, followed by personal hearing on
10.08.2024 and 08.08.2024. The impugned order came to be passed
dropping the defects 1,3, 4, 5 and 8 and confirming the following defects:
i) Mismatch between GSTR 1 and GSTR 3B
ii) Other income treated as consideration received
iii) Reversal of input tax credit on purchase returns
3. The learned counsel for the petitioner would 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,
https://www.mhc.tn.gov.in/judis
to submit that this court has remanded the matter back in similar
circumstances subject to payment of 10% of the disputed taxes.
4. It was further submitted that the petitioner is ready and willing to
pay 10% 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.
5. By consent of both parties, the writ petition stands disposed of on
the following terms:
a) The impugned order and the consequential demand order dated
24.08.2024 are set aside
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
https://www.mhc.tn.gov.in/judis
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 of 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 proceedings, the same shall be lifted /withdrawn on complying
with the above condition viz., payment of 10 % of the disputed taxes.
https://www.mhc.tn.gov.in/judis
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 will be no order as to costs. Consequently, connected
miscellaneous petitions are closed.
22.01.2025
Index : Yes/No
Neutral Citation : Yes/No
mrn
https://www.mhc.tn.gov.in/judis
To
The Assessment Commissioner (ST),
Chithode Assessment Circle,
No.38, K.N.K. Road,
Karungalpalyam,
Erode -638003
https://www.mhc.tn.gov.in/judis
MOHAMMED SHAFFIQ, J.
(mrn)
and
WMP Nos.1979 and 1980 of 2025
22.01.2025
https://www.mhc.tn.gov.in/judis
