Sheik Meeran Beer Mohamed Aashik Meeran vs. The Assistant Commissioner (State Tax)

Held

The Court held that the ex parte order passed by the First Respondent was in violation of the principles of natural justice, as the petitioner claimed to be unaware of the proceedings due to online service of notice. The Court, following the submission of the learned Additional Government Pleader regarding relief in similar matters, directed the petitioner to deposit 25% of the disputed tax amount through the electronic cash ledger within thirty days from the receipt of the order. Upon compliance, the attachment on the petitioner's Input Tax Credit (ITC) account would be raised. The impugned order would stand quashed. The petitioner was then directed to file a reply to the show cause notice within thirty days thereafter. The respondent was mandated to provide a personal hearing and pass a final order within two months. The Court also stipulated that if the petitioner failed to comply with the deposit and reply deadlines, the benefit of this order would be automatically recalled, and the impugned order could be enforced. No specific amount in dispute was recorded.

Facts

The petitioner, Sheik Meeran Beer Mohamed Aashik Meeran, proprietor of Tvl. Famous Ice Products, filed a writ petition challenging an ex parte order passed by the First Respondent, the Assistant Commissioner (State Tax). The petitioner contended that the notice was served only through the online portal, and therefore, they were unaware of the proceedings. The impugned order was passed under Section 73 read with Rule 142(5) of the Tamil Nadu Goods and Services Tax Act, 2017, and was dated 03-10-2024. The petitioner sought to quash this order on grounds of illegality and violation of natural justice, requesting a fresh order after a personal hearing. The tax period involved is 2020-2021, and the order reference is ZD331024018940V.

Key Issues

1. Whether the ex parte order passed by the First Respondent, in violation of the principles of natural justice, is liable to be quashed? This issue turns on the interpretation and application of principles of natural justice and the procedural requirements under the Tamil Nadu Goods and Services Tax Act, 2017, particularly concerning notice and opportunity of hearing. The petitioner argued that the ex parte order was passed without proper notice, as it was served only through the online portal, leading to their unawareness of the proceedings. They contended that this violated their right to a fair hearing. The respondents, represented by the Additional Government Pleader, did not explicitly argue against the petitioner's claim of procedural violation but submitted that in similar matters, relief was granted upon deposit of 25% of the disputed tax amount.