Madras High Court
M/S.Sri Laxmi Timbers Private Limited vs State Tax Officer (Collection And ... on 24 March, 2025
Author: G.R.Swaminathan
Bench: G.R.Swaminathan
W.A.(MD)Nos.1066 & 1067 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 24.03.2025
CORAM
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
AND
THE HONOURABLE MR.JUSTICE M.JOTHIRAMAN
W.A(MD)Nos.1066 & 1067 of 2022
and
C.M.P(MD)Nos.8544 to 8547 of 2022
W.A(MD)No.1066 of 2022:
M/s.Sri Laxmi Timbers Private Limited,
Represented by its Authorized Signatory,
Prakash Patel,
No.13-A, Shencottai Road,
Tenkasi,
Tenkasi District – 627 811. ... Appellant /
Petitioner
Vs.
State Tax Officer (Collection and Arrears),
Tirunelveli. ... Respondent /
Respondent
Prayer: Writ Appeal filed under Clause 15 of Letters Patent to set aside
the common order of the learned single Judge made in W.P(MD)No.
16073 of 2021 dated 08.09.2021 and to allow the above Writ Appeal.
For Appellant : Mr.G.Dhanamadhri
For Respondent : Mr.R.Suresh Kumar
Additional Government Pleader
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W.A.(MD)Nos.1066 & 1067 of 2022
W.A(MD)No.1067 of 2022:
M/s.Sri Laxmi Timbers Private Limited,
Represented by its Authorized Signatory,
Prakash Patel,
No.13-A, Shencottai Road,
Tenkasi,
Tenkasi District – 627 811. ... Appellant /
Petitioner
Vs.
State Tax Officer (Collection and Arrears),
Tirunelveli. ... Respondent /
Respondent
Prayer: Writ Appeal filed under Clause 15 of Letters Patent to set aside
the common order of the learned single Judge made in W.P(MD)No.
16074 of 2021 dated 08.09.2021 and to allow the above Writ Appeal.
For Appellant : Mr.G.Dhanamadhri
For Respondent : Mr.R.Suresh Kumar
Additional Government Pleader
COMMON JUDGMENT
(Judgment of the Court was made by G.R.Swaminathan J.)
The appellant herein filed W.P(MD)Nos.16073 and 16074 of 2021
challenging the assessment orders made by the respondents for the
assessment years 2017-18 and 2018-19. The writ petitions were
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W.A.(MD)Nos.1066 & 1067 of 2022
dismissed vide order dated 08.09.2021 by the learned single Judge.
Aggrieved by the same, these Writ Appeals have been filed.
2.The learned counsel appearing for the appellant strongly
submitted that there has been a gross violation of the principles of natural
justice. He submitted that the appellant had shut down their business in
the year 2018 itself. And that is why they prayed for adequate
opportunity and time to produce the relevant records. He pointed out that
the impugned proceedings took place when the COVID pandemic was at
its peak. He placed reliance on the order dated 12.06.2023 made in
W.P(MD)No.14407 of 2021 etc batch. A learned Judge of this Court had
granted relief to the appellant herein in respect of some other orders
without stipulating any condition. The learned counsel requested this
Court to adopt the very same approach in this case also.
3.Per contra, the learned Additional Government Pleader appearing
for the respondent submitted that the impugned order does not call for
interference.
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W.A.(MD)Nos.1066 & 1067 of 2022
4.The learned single Judge while dismissing the writ petitions had
held as follows:
“9. Insofar as the first ground urged by the petitioner
that no opportunity was given, by thus, there has been
violation of natural justice is concerned, as discussed
above, several opportunities had been given to the
petitioner and each and every time either the petitioner has
not attended such opportunity or simply attended through
the representative and sought for time. The opportunities
given by the Assessing Authority were not properly utilized
by the petitioner and when final notice was issued, even
then, further time was sought for and personal hearing was
not attended. Therefore, on 10.12.2020, again notice was
issued, for which, on 17.12.2020, the petitioner has given a
reply, claimed to have supplied documents. Thereafter, in
the said reply dated 17.12.2020, merely because the
petitioner sought for or made a request to the Assessing
Authority, not to initiate any further action, till the
petitioner will have one more personal hearing is
concerned, it is an attempt of stretching up of opportunity,
which is beyond the scope of personal hearing as, such a
personal hearing opportunity was given to the petitioner
more than once and without utilising that personal hearing
opportunity, the petitioner unilaterally cannot seek for one
more personal hearing and make a request to the Assessing
Authority, not to initiate further action till the assessee will
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W.A.(MD)Nos.1066 & 1067 of 2022
have one more personal hearing as that is unknown to the
procedure being established. Therefore, in these cases, as
per records, which have been clearly demonstrated by the
Revenue, sufficient opportunity was given to the petitioner,
which has either not been properly utilized or they wanted
to prolong the assessment process further, for the reasons
best known to them. Therefore, the ground of alleged
violation of principles of natural justice is not available in
these cases.
10.Insofar as the other ground urged by the
petitioner that the impugned order has gone beyond the
scope of show cause notice is concerned, it is the case of
the petitioner that, with regard to the goods sold to Sri
MRP Enterprises, Pondicherry, it was first time introduced
therefore that is beyond the scope of the show cause notice.
But the fact remains that, in the show cause notice, three
traders namely, Sri Sivaskthi Trade Mart, Pondicherry,
Cauvery Saw Mill and Greenwood Trading Company were
given and in this regard, the alleged purchase made by the
petitioner/assessee from Sri Sivaskthi Trade Mart had been
sold to one MRP Enterprises at Pondicherry that is in the
same byepass Road at Pondicherry. Both Sri Sivaskthi
Trade Mart and Sri MRP Enterprises are located in the
same place and the assessee purchased the goods and sold
it to the next door. Therefore, according to the Revenue,
assessee entered bogus entry bill, using the registration
and therefore, ITC claimed by the petitioner in this regard
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W.A.(MD)Nos.1066 & 1067 of 2022
is a wrong claim, that is, in fact, the basis for issuance of
show cause notice. Therefore, it cannot be considered
prima facie that the respondent has gone beyond the scope
of the show cause notice in their assessment order, as the
source of purchase and the source of selling to establish the
alleged bogus transaction taken place in this regard, the
Assessment Officer has pointed out in the impugned order
about the buyer. Therefore, that cannot be treated as a new
introduction and thus the second ground urged by the
petitioner that the impugned assessment order has gone
beyond the scope of the show cause notice is without any
substance.”
We are of the view that the factual and legal analysis made by the learned
single Judge cannot be faulted.
5.It is well settled that in fiscal matters, the writ Court should be
very reluctant to interfere when the assessee has not exhausted the
alternative statutory remedies. In fact, we called upon the learned
counsel for the appellant to take instructions as to whether the assessee
would offer to make some payment. The matter was adjourned on more
than one occasion for this purpose.
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W.A.(MD)Nos.1066 & 1067 of 2022
6.The learned counsel for the appellant submitted that the
assessee's bank account has become NPA and that their properties have
been attached, and therefore they are not in a position to comply with any
terms that may be stipulated by this Court.
7.We are of the view that the assessee has not made out any case
for by-passing the alternative remedy of appeal. The order impugned in
these writ appeals are sustained.
8.These Writ Appeals are dismissed. No costs. Consequently,
connected miscellaneous petitions are closed.
[G.R.S., J.] [M.J.R., J.]
24.03.2025
NCC : Yes / No
Index : Yes / No
Internet : Yes/ No
MGA
To
State Tax Officer (Collection and Arrears),
Tirunelveli.
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W.A.(MD)Nos.1066 & 1067 of 2022
G.R.SWAMINATHAN,J.
AND
M.JOTHIRAMAN, J.
MGA
W.A(MD)Nos.1066 & 1067 of 2022
and
C.M.P(MD)Nos.8544 to 8547 of 2022
24.03.2025
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