Madras High Court
Ulganathan Suresh vs Deputy Commercial Tax Officer (St) on 30 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.3314 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.3314 of 2025
and
W.M.P.Nos.3681, 3683, 3684 and 3686 of 2025
Ulganathan Suresh ... Petitioner
Vs.
1.Deputy Commercial Tax Officer (ST)
Sholinganallur Assessment Circle,
No.241, Second Floor,
Integrated Building of Commercial Taxes
and Registration Department,
Farnpet, Chennai 600 035.
2.The Branch Manager,
Axis Bank,
No.284/6, Lakshman Nagar, Khandan Chavadi,
Perungudi, Chennai 600 096.
3.Assistant Commissioner (ST), (FAC),
Sholinganallur Assessment Circle,
2nd Floor, Integrated Building for Registration and
Commercial Taxes Departments, Nandanam,
Chennai 600 035. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Certiorari calling for the records in the file of the
first respondent and quash the impugned order under Section 73 of the Tamil
Nadu Goods and Service Tax Act, 2017/ Central Goods and Service Tax Act,
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1/8
W.P.No.3314 of 2025
2017 including the summary of the order in Form GST DRC-07 both dated
19.08.2024 and having Reference Number ZD3308241526376 and its
annexure dated 19.08.2024 in GSTIN:33AXJPS7963E1Z2/2019-20 passed by
the first respondent for the FY 2019-20.
For Petitioner : M/s.N.V.Lakhsmi
For Respondents : Mr.V.Prashanth,
Government Advocate for R1 and R3.
ORDER
The present writ petition is filed challenging the impugned order passed
by the first respondent dated 19.08.2024 relating to the assessment year 2019-
2. The petitioner is engaged in the business of outdoor catering 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, it was
noticed that there was mismatch between GSTR-8 and GSTR-1.
2.1. Pursuant thereto, a notice in ASMT-10 was issued on 07.03.2022,
followed by DRC-01 on 30.05.2024. 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.
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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
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
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 was further submitted that
the petitioner is ready and willing to pay 25% 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 Government
Advocate appearing for the first and third respondents does not have any
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serious objection.
5. By consent of both parties, the writ petition stands disposed of on the
following terms:
a) The impugned order dated 19.08.2024 is set aside.
b) The petitioner shall deposit 25% of the disputed taxes as admitted by
the learned counsel for the petitioner and the respondents 1 and 3, 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 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 with the above direction shall be completed within a period of
four weeks from the date of receipt of copy of this order.
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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
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.
6. There shall be no order as to costs. Consequently, connected
miscellaneous petitions are closed.
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30.01.2025
Speaking (or) Non Speaking Order
Index : Yes/ No
Neutral Citation: Yes/No
shk
To:
1.Deputy Commercial Tax Officer (ST)
Sholinganallur Assessment Circle,
No.241, Second Floor,
Integrated Building of Commercial Taxes
and Registration Department,
https://www.mhc.tn.gov.in/judis
Farnpet, Chennai 600 035.
2.The Branch Manager,
Axis Bank,
No.284/6, Lakshman Nagar, Khandan Chavadi,
Perungudi, Chennai 600 096.
3.Assistant Commissioner (ST), (FAC),
Sholinganallur Assessment Circle,
2nd Floor, Integrated Building for Registration and
Commercial Taxes Departments, Nandanam,
Chennai 600 035.
MOHAMMED SHAFFIQ, J.
shk
https://www.mhc.tn.gov.in/judis
and
W.M.P.Nos.3681, 3683, 3684 and 3686 of 2025
30.01.2025
(1/2)
https://www.mhc.tn.gov.in/judis
