Selva Steel Foundry vs. The State Tax Officer

Facts

The petitioner, Selva Steel Foundry, filed three writ petitions challenging assessment orders passed by the State Tax Officer, Vedasandur Assessment Circle, Dindigul, dated August 14, 2024. These orders were issued under Section 73 of the CGST/TNGST Act, 2017, for the tax period April 2019 to March 2020. The petitioner contended that they faced difficulties in filing returns on time due to the COVID-19 lockdown and industry downturn but had cleared pending dues and filed returns by April 2022. They argued that the respondent passed the impugned orders without proper consideration of the available materials. The respondent, however, stated that the orders were passed after considering all materials and pointed out the availability of an appellate remedy.

Held

The Court noted the submission of the learned Government Advocate that the petitioner has an appellate remedy available before the Deputy Commissioner under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petitions, granting liberty to the petitioner to approach the appellate authority. The petitioner was permitted to raise all grounds raised in the writ petitions before the appellate authority. The Court directed that if an appeal is filed within two weeks from the date of receiving a copy of the order, the appellate authority shall entertain the appeal without considering the period of limitation and dispose of it in accordance with the law within one month thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment orders passed by the respondent under Section 73 of the CGST/TNGST Act, 2017, are liable to be quashed for not properly considering the materials on record, as argued by the petitioner? 2. Whether the petitioner, having directly approached the High Court, should be relegated to the appellate remedy available under Section 107 of the TNGST Act, 2017, as contended by the respondent? The petitioner argued that the impugned orders were illegal as they were passed without proper consideration of the facts and circumstances, including the difficulties faced due to the COVID-19 lockdown and the subsequent clearance of dues and filing of returns. The respondent argued that the orders were validly passed after considering all available materials and that the petitioner had an alternative statutory remedy of appeal before the Deputy Commissioner under Section 107 of the TNGST Act, 2017, which they failed to pursue before filing the writ petitions.