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 28.02.2024, issued by the Respondent, The State Tax Officer (Inspection)-III, for the tax period 2018-2019. The petitioner contended that the order was passed without providing sufficient opportunity, violating principles of natural justice. The Respondent argued that a show cause notice in Form GST DRC 01 was issued on 22.12.2023, followed by reminders, and that the petitioner had an alternative appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal). The petitioner had approached the High Court directly without availing this remedy.

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an available 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 could be presented before the appellate authority. Furthermore, if the appeal is filed within two weeks from the date of receiving a copy of this order, the appellate authority is directed to entertain the appeal without considering the period of limitation and to dispose of it in accordance with the law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 28.02.2024, issued by the Respondent for the period 2018-2019, is liable to be quashed for violation of principles of natural justice due to insufficient opportunity provided 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 on this ground. Respondent's Contention: The respondent contended that a show cause notice was duly issued on 22.12.2023, followed by reminders, indicating that an opportunity was provided. They further argued that the petitioner possesses an efficacious alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have pursued that route instead of directly approaching the High Court.