Sakthivel vs. The State Tax Officer 1

Facts

The petitioner, Sakthivel, Proprietor of M/s. Sri Karthiga Traders, filed a writ petition challenging an assessment order dated 12.04.2024, issued by the respondent, The State Tax Officer 1, Sivakasi Assessment Circle. The order pertains to the financial year 2018-2019. 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 31.01.2024, followed by reminders, and that the petitioner has an alternative appellate remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Tirunelveli.

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an appellate 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 petitioner was directed to file the appeal within two weeks from the date of receipt of the Court's order. The appellate authority was directed to entertain the appeal without reference to the period of limitation and to dispose of it in accordance with law within three months thereafter. The Court did not make any specific finding on the merits of the petitioner's claim regarding violation of natural justice or the validity of the assessment order itself, as the matter was remitted to the appellate authority. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 12.04.2024, passed by the respondent for the financial year 2018-2019, is liable to be quashed for violation of principles of natural justice due to insufficient opportunity provided to the petitioner? (Question of law and fact, turning on principles of natural justice and procedural fairness under GST law). Petitioner's contention: The assessment order was passed without affording adequate opportunity to the petitioner to present their case and evidence, thus violating the principles of natural justice. The petitioner seeks to quash the order and direct re-adjudication after a personal hearing. Respondent's contention: The respondent issued a show cause notice on 31.01.2024, followed by reminders on 15.03.2024, 25.03.2024, and 01.04.2024. The petitioner has an effective alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.