Tvl. Amir Badhusha Sikkander Badhusha vs. State Tax Officer

Facts

The petitioner, Tvl.Amir Badhusha Sikkander Badhusha, represented by its Proprietor, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 12.12.2023, passed by the respondent, the State Tax Officer, Tirupathur Assessment Circle, for the assessment year 2017-2018. 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 (DRC-01) was issued on 28.08.2023, followed by several reminders, and that an appeal remedy under Section 107 of the GST Act, 2017, was available to the petitioner.

Held

The Court noted the submission made by the learned Government Advocate for the respondent that the petitioner possesses an appeal remedy before the Deputy Commissioner (ST) (Appeal), Madurai, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition by granting liberty 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 the order, the appellate authority shall entertain the appeal without reference to the period of limitation and dispose of it in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 12.12.2023, passed by the respondent for the assessment year 2017-2018, is illegal and liable to be quashed for violation of the principles of natural justice, specifically for not providing sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the assessment order was passed without affording them adequate opportunity to present their case, thereby violating the fundamental principles of natural justice. They sought to quash the impugned order and direct the respondent to redo the assessment proceedings. Respondent's contention: The respondent contended that the assessment order was passed after issuing a show cause notice (DRC-01) on 28.08.2023, followed by multiple reminders on 15.09.2023, 26.10.2023, 20.11.2023, and 01.12.2023. The respondent also pointed out that the petitioner had an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Madurai, and that the petitioner had prematurely approached the High Court without exhausting this remedy.