Madras High Court
Tvl.Mas Enterprises vs The Assistant Commissioner (St) on 24 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P. No.2101 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 24.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.2101 of 2025
and
W.M.P.Nos.2468 and 2470 of 2025
Tvl.Mas Enterprises
Rep. by its Partner,
Mr.Ravi Shankar,
Plot No.523-525, Bhagyam Street,
Golden George Nagar, Nerkundrum,
Chennai 600 107. .. Petitioner
Vs.
The Assistant Commissioner (ST),
No.353, 3rd Street,
Integrated Commercial Taxes Building,
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 in the
files of respondent herein in proceedings
GSTIN:33ABHFM7285M1ZO/2018-19 dated 29.04.2024 along with
Form GST DRC-07 vide Ref.No.ZD330424241604P dated 29.04.2024
and consequential recovery notice bearing
RC.No.33ABHFM7285M1ZO/2024-25 dated 11.11.2024 and quash the
same.
For Petitioner : Mr.P.Arumugam
for Mr.S.Muthuvenkataraman
Page 1 of 8
https://www.mhc.tn.gov.in/judis
W.P. No.2101 of 2025
For Respondents : Ms.Amrita Dinakaran
Government Advocate
ORDER
The present writ petition is filed challenging the impugned order
dated 29.04.2024, passed by the respondent in
GSTIN:33ABHFM7285M1ZO/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 registered dealer 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 returns submitted by the
petitioner certain discrepancies were inter alia noticed viz.,
i) Excess claim of Input Tax Credit.
ii) Under declaration of Ineligible Input Tax Credit.
3. It is submitted by the learned counsel for the petitioner that a
notice in DRC-01 was issued to the petitioner on 27.12.2023 followed by
two reminders viz., 08.03.2024 and 13.04.2024. However, the petitioner
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had not responded to any of the above notices / intimation and the
impugned order came to be passed. It is submitted by the learned 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 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. It is further submitted by the
learned counsel for the petitioner that pursuant to the impugned order,
the petitioner's bank account, as mentioned in the prayer has been
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attached and the same may be lifted/withdrawn.
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, 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 29.04.2024 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 paid out of the disputed
taxes, including by way of pre-deposit in appeal, the same would be
reduced/adjusted from/towards the 25% of disputed taxes directed to be
paid. The assessing authority shall then intimate the balance amount out
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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:
The Assistant Commissioner (ST),
No.353, 3rd Street,
Integrated Commercial Taxes Building,
Nandanam, Chennai 600 035.
https://www.mhc.tn.gov.in/judis
MOHAMMED SHAFFIQ, J.
spp
and
W.M.P.Nos.2468 and 2470 of 2025
24.01.2025
https://www.mhc.tn.gov.in/judis
