M/S Chillakuru Rama Mohan Reddy vs. Assistant Commissioner (St)

Held

The Court disposed of the writ petitions by directing that the impugned assessment orders shall remain suspended if the petitioner deposits a sum equivalent to 10% of the tax in dispute, after adjusting the tax already paid, within four weeks from the date of the order. Upon such deposit, the assessing authority is mandated to consider the matters afresh. This fresh consideration must include giving the petitioner an adequate opportunity of hearing and considering all documents submitted by the petitioner, in accordance with the law. The assessing authority is directed to pass fresh orders preferably within eight weeks from the date of the order. The Court also stipulated that no unnecessary adjournments should be sought by either party. It was clarified that the matters would be considered afresh independently and in accordance with law, without prejudice to any observations made in the current order or the impugned orders. The Court further stated that if the petitioner fails to make the deposit within the stipulated timeframe, the impugned orders shall continue to remain in force. The Court did not expressly leave any issue undecided.

Facts

The petitioner challenged assessment orders dated 06.02.2021 imposing tax, penalty, and interest under the Central Goods and Services Tax Act, 2017 (CGST Act) for various periods. These periods included April 2019 to August 2019, September 2019 to March 2020, and May 2018 to March 2019. The petitioner argued that similar matters concerning the Andhra Pradesh Goods and Services Tax Act, 2017, for comparable periods were previously heard by the High Court. In those earlier writ petitions (W.P.Nos.11857, 11860 and 11888 of 2021), an order dated 28.06.2021 directed the petitioner to deposit 10% of the tax, penalty, and interest after adjusting tax already paid, leading to the suspension of the impugned orders and remand to the assessing authority. The petitioner sought similar relief in the present petitions, requesting to deposit 10% of the disputed tax after adjusting tax already paid, citing Section 107(6) of the CGST Act.

Key Issues

1. Whether the petitioner is entitled to a direction for suspension of the impugned assessment orders and remand of the matters to the assessing authority for fresh consideration, subject to depositing 10% of the tax in dispute after adjusting tax already paid, in light of the previous order of this Court in W.P.Nos.11857, 11860 and 11888 of 2021 and Section 107(6) of the CGST Act? Petitioner's Arguments: The petitioner contended that the present writ petitions involve assessment orders for similar periods and on similar grounds as those dealt with in earlier writ petitions. They relied on the order dated 28.06.2021 passed in W.P.Nos.11857, 11860 and 11888 of 2021, which directed a deposit of 10% of the tax, penalty, and interest after adjustment of tax already paid, and subsequent remand. The petitioner specifically invoked Section 107(6) of the CGST Act to support their plea for depositing 10% of the tax in dispute after adjusting tax already paid. Revenue's Arguments: The learned counsel appearing for the respondents did not dispute the facts presented by the petitioner regarding the previous order and the applicability of the petitioner's request.