Madras High Court
Tvl.Bhartia Pulverisers vs Assistant Commissioner (St) on 24 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P. No.2065 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 24.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.2065 of 2025
and
W.M.P.Nos.2419 and 2422 of 2025
Tvl.Bhartia Pulverisers,
Rep. by its Partner,
Mr.Jagdamba Prasad Chaturbhuji Bhartia,
No.11/2 Part B2, Sipcot Industrial Park,
Gummidipoondi, Thervoykandigai,
Chennai Tamil Nadu 601 202. .. Petitioner
Vs.
Assistant Commissioner (ST),
Gummidipoondi Assessment Circle,
Integrated Building for Commercial Taxes Department,
Chennai North Division, Room No.112, 1st Floor,
Elephant Gate Bridge Road, Chennai 600 003.
.. 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 08.05.2023 in
GSTN:33AABFB5975E1ZN/2018-19 for the financial year 2018-2019
and quash the same.
For Petitioner : Mr.Pranav Jain
For Respondents : Ms.Amrita Dinakaran
Government Advocate
Page 1 of 8
https://www.mhc.tn.gov.in/judis
W.P. No.2065 of 2025
ORDER
The present writ petition is filed challenging the impugned order
dated 08.05.2023, passed by the respondent in
GSTN:33AABFB5975E1ZN/2018-19 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 dealer in Iron Steel raw materials and is registered under the
GST Act. During the relevant period of 2018-19, the petitioner has filed
the returns and paid appropriate taxes. However, on scrutiny of the return,
it was inter alia found that there was a discrepancy viz., mismatch
between GSTR 3B and GSTR 2A.
3. It is submitted by the learned counsel for the petitioner that a
notice in DRC-01A was issued on 06.07.2022 followed by a notice in
Form DRC 01 on 29.11.2022. Thereafter, a reminder notice was also
issued to the petitioner vide notice dated 20.12.2022. However, the
petitioner had not responded to any of the above notices / intimation and
the impugned order came to be passed. It is submitted by the learned
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counsel for the petitioner 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 in the “View
additional notice and Orders” tab in the GST Portal, thereby, the petitioner
was unaware of the initiated proceedings and was thus unable to
participate in the adjudication proceedings. It is also submitted by the
learned counsel for the petitioner that pursuant to the passing of impugned
order 15% of the disputed taxes has been debited by means of electronic
cash ledger. It is submitted by the learned counsel for the petitioner that if
the petitioner is provided with an opportunity, he would be able to explain
the alleged discrepancy.
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, to submit that
this court has remanded the matter back in similar circumstances subject
to payment of 25% of the disputed taxes.
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5. 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. It is also submitted that subsequent to the passing of the
impugned order, 15% of the disputed taxes has already been debited by
means of electronic cash ledger and would request that the same may be
adjusted towards 25% of the disputed tax, to which, the learned
Government Advocate appearing for the respondent does not have any
serious objection.
6. By consent of both parties, the writ petition stands disposed of on
the following terms:
a) The impugned order dated 08.05.2023 is set aside.
b) The petitioner shall deposit 25% 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 debited from
electronic cash ledger paid out of the disputed taxes, including
by way of pre-deposit in appeal, the same would be
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reduced / adjusted from / towards the 25% of disputed taxes directed to be
paid. The assessing authority shall then intimate the balance amount out
of 25% 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 25% 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 25%
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 25 % of the disputed taxes.
g) On complying with the above condition, the impugned order of
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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., 25% 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.
7. There shall be no order as to costs. Consequently, connected
miscellaneous petitions are closed.
24.01.2025
Speaking (or) Non Speaking Order
Index:Yes/No
Neutral Citation: Yes/No
spp
https://www.mhc.tn.gov.in/judis
To:
Assistant Commissioner (ST),
Gummidipoondi Assessment Circle,
Integrated Building for Commercial Taxes Department,
Chennai North Division, Room No.112, 1st Floor,
Elephant Gate Bridge Road, Chennai 600 003.
https://www.mhc.tn.gov.in/judis
MOHAMMED SHAFFIQ, J.
spp
and
W.M.P.Nos.2419 and 2422 of 2025
24.01.2025
https://www.mhc.tn.gov.in/judis
