Tvl. Sri Ganesh Lorry Service vs. The Assistant Commissioner (St) -1

Facts

The petitioner, Tvl. Sri Ganesh Lorry Service, represented by its Proprietor V. Rengaraj, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated November 12, 2024, passed by the respondent, The Assistant Commissioner (ST)-1, Tuticorin. The assessment order pertains to the tax period 2023-2024. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that a show cause notice was issued on August 19, 2024, and that the petitioner has an alternative appeal remedy under Section 107 of the GST Act, 2017.

Held

The Court noted the submission made by the learned Government Advocate that the petitioner has an available appeal remedy before the Deputy Commissioner (ST) (Appeal), Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition with liberty granted to the petitioner to approach the appellate authority. The petitioner was permitted to raise all the grounds raised in the writ petition before the appellate authority. The Court further directed that if an appeal is filed within two weeks from the date of receipt of a copy of this order, the appellate authority shall entertain the appeal without reference to the period of limitation and dispose of the same in accordance with law within four months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 12.11.2024, passed by the respondent for the tax period 2023-2024, is illegal, without jurisdiction, and in gross violation of the Principles of Natural Justice, as contended by the petitioner? The petitioner argued that the assessment order was passed without affording sufficient opportunity, thus violating principles of natural justice. The petitioner sought to quash the order and have a fresh assessment with a personal hearing. The respondent argued that a show cause notice was issued on 19.08.2024, and therefore, the assessment order was valid. The respondent also contended that the petitioner has an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Tirunelveli, and that the petitioner should have availed this remedy instead of directly approaching the High Court.