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 challenging an assessment order dated September 25, 2024, passed by the Assistant Commissioner (ST)-1, Tuticorin, for the tax period 2018-2019. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating the principles of natural justice. The respondent revenue authority argued that a show cause notice was issued on August 19, 2024, and that the petitioner had an alternative remedy of appeal under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Tirunelveli. The petitioner approached the High Court directly without availing this appellate remedy.

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an appeal remedy before the Deputy Commissioner (ST) (Appeal), Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of with liberty granted to the petitioner to approach the appellate authority. The Court directed that if the appeal is filed within two weeks from the date of receiving a copy of the order, the appellate authority shall entertain it without considering the period of limitation. The appellate authority is further directed to dispose of the appeal in accordance with the law within four months thereafter. The Court made no order as to costs.

Key Issues

1. Whether the assessment order passed by the respondent is illegal and in gross violation of the principles of natural justice for not providing sufficient opportunity to the petitioner, as contemplated under the GST Act? Petitioner's Contention: The petitioner argued that the assessment order was passed without affording them adequate opportunity, thus contravening the principles of natural justice. They sought to quash the impugned order and direct the respondent to conduct a fresh assessment after providing a personal hearing. Respondent's Contention: The respondent contended that a show cause notice was duly issued to the petitioner on August 19, 2024, and therefore, the assessment order was passed after due process. They further argued that the petitioner has an efficacious alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.