Ramaraj Constructions vs. The State Tax Officer
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Before: and
Heard together (5 matters)
Read from the judgment's own cause title. This page is filed under one of them.
By this common order, all these Writ Petitions are taken up for dismissal.
In these Writ Petitions, the petitioner has challenged the respective assessment orders dated 16.05.2023 bearing reference No.33AEIPR7002M1ZC 4/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 for the respective assessment years as detailed below: S.No W.P.(MD)No. Assessment Year Tax Rs. Interest Rs. Penalty Rs. 1. 9834 of 2024 2017-18 17,05,330.00 8,10,504.64 17,05,330.00 2. 9835 of 2024 2018-19 8,70,392.80 3,38,259.88 8,70,392.80 3. 9836 of 2024 2019-20 8,95,680.00 2,84,950.06 8,95,680.00 4. 9837 of 2024 2020-21 19,76,120.00 4,80,721.88 19,76,120.00 5. 9838 of 2024 2021-22 4,91,406.00 69,700.48 4,91,406.00
The impugned orders have been passed under Section 74 of the TNGST Act, 2017 for the above mentioned assessment years.
The learned counsel for the petitioner submits that the petitioner is a small time building contractor and had committed certain mistakes, but, has, however, paid disputed tax together with the interest.
It is submitted that the 100% penalty, that has been levied, is usurious and therefore, liable to be interfered with.
The learned counsel for the petitioner has drawn attention to the decision 5/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 of this Court in the case of M/s.Aarthi Hotels vs. Assistant Commissioner (ST) (FAC) in W.P.No.3474 of 2021, dated 08.12.2021. Specifically, the learned counsel for the petitioner would submit that in the aforesaid case, the Court had considered the rigors of law and reduced the penalty to Rs.10,000/-. It is submitted that the same exercise may be followed in this case as well.
It is further submitted that this is a fit case for reading down the provisions of Section 74 of the TNGST Act, 2017 and CGST Act, 2017. 8. On the other hand, the learned Government Advocate for the respondent would submit that these Writ Petitions are devoid of merits and are liable to be dismissed.
It is submitted that the impugned orders are dated 16.05.2023. However, these Writ Petitions are filed before this Court on 08.04.2024. Therefore, these Writ Petitions are hopelessly time barred and therefore, liable to be dismissed, on account of latches, in the light of the decision of the Hon'ble Supreme Court in 6/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 Smith Kline Consumer Health Care Limited reported in 2020 SCC Online SC
It is submitted that even otherwise, the appellate remedy is also time barred in the light of the decision of the Hon'ble Supreme Court in the case of 7/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 subject as I understand is that there is no scope for any reduction of penalty, contrary to Section 74 of the respective GST enactments.
In the case of M/s.Aarthi Hotel referred supra by the learned counsel for the petitioner, the petitioner M/s.Aarthi Hotel had availed Input Tax Credit but had not utilised the same. Whereas, in this case, the tax amount has been paid on the date of inspection, which is long after the due date for payment for the respective assessment years.
Considering the same, I do not wish to make any further observations on the submissions made by the learned counsel for the petitioner. Perhaps, the petitioner may able to convince the Court, when the matter reaches before the Hon'ble Division Bench of this Court either by way of Appeal from the orders of Appellate Authority or Tribunal or if a challenge is made to the vires of Section 74 of the respective GST enactments, stating that it works very harshly against the small time assessees.
These Writ Petitions are dismissed with a liberty to the petitioner to file 8/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 statutory Appeal within a period of 30 days from the date of receipt of a copy of this order. No costs. Consequently, connected miscellaneous petitions are closed. Index : Yes / No 08.07.2024 Internet : Yes / No apd To The State Tax Officer, Papanasam Assessment Circle, Papanasam, Thanjavur. 9/10 https://www.mhc.tn.gov.in/judis
W.P.(MD) Nos.9834 to 9838 of 2024 C.SARAVANAN, J.
apd W.P.(MD) Nos.9834 to 9838 of 2024 08.07.2024 10/10 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.