M/S. Sri Durga Pharmaceuticals vs. The State Tax Officer (Inspection)-Iii

Facts

The petitioner, M/s. Sri Durga Pharmaceuticals, represented by its Proprietrix A. Sheela Alagesan, filed a writ petition challenging an assessment order dated August 29, 2024, issued by the respondent, The State Tax Officer (Inspection)-III. The order pertains to the assessment year 2020-2021. 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 May 21, 2024, followed by reminders, and that the petitioner has 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 has an appeal remedy before the Deputy Commissioner (ST) (Appeal), Tiruchirappalli, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of by granting the petitioner liberty to approach the appellate authority. The Court directed that all grounds raised in the writ petition can be raised in the appeal. The appellate authority was instructed to entertain the appeal if filed within two weeks from the date of receipt of the order, irrespective of the period of limitation, and to dispose of the same in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 29.08.2024, issued by the respondent for the assessment year 2020-2021, is liable to be quashed for violation of the 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, thus violating the principles of natural justice. Respondent's contention: The respondent issued a show cause notice on 21.05.2024, followed by reminders on 26.06.2024, 10.07.2024, and 27.07.2024, 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.