Tvl. Kalaimagal Jawli Store vs. The Deputy State Tax Officer-I

Facts

The petitioner, Tvl.Kalaimagal Jawli Store, represented by its proprietor A.Arumugam, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 13.08.2024 and a consequential order in DRC-07 dated 14.08.2024, both passed by the respondent, The Deputy State Tax Officer - I, Karur. The petitioner contended that the assessment order for the year 2019-2020 was passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that a show cause notice (DRC-01) was issued on 28.05.2024, followed by reminders, and that the petitioner had an alternative appeal remedy under Section 107 of the GST Act, 2017.

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an appeal remedy before the Deputy Commissioner (ST) (Appeal), Erode, 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 grounds raised in the writ petition before the appellate authority. The Court directed that if an appeal is filed within two weeks from the date of receiving a copy of this order, the appellate authority shall entertain the appeal without considering the period of limitation. The appellate authority was further directed to dispose of the appeal in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order passed by the respondent for the year 2019-2020 is liable to be quashed for violating the principles of natural justice by not providing sufficient opportunity to the petitioner? (Question of law and fact, turning on principles of natural justice and relevant GST provisions). Petitioner's contention: The assessment order was passed without affording adequate opportunity to present their case, thus violating the principles of natural justice and making the order arbitrary and illegal. Respondent's contention: The respondent issued a show cause notice (DRC-01) on 28.05.2024, followed by multiple reminders, indicating that sufficient opportunity was provided. The respondent also highlighted that the petitioner has an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.