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

Facts

The petitioner, M/s. Sri Durga Pharmaceuticals, represented by its Proprietrix A. Sheela Alagesan, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 27.12.2023, bearing reference ZD331223213487O, issued by the respondent, The State Tax Officer (Inspection)-II. The order pertains to the financial 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 29.09.2023, followed by reminders, and that the petitioner has an alternative appeal remedy under Section 107 of the GST Act.

Held

The Court noted the submission made by the learned Government Advocate for the respondent, confirming that the petitioner has an appeal remedy available 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, the Court stipulated 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 also directed to dispose of the appeal in accordance with the law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 27.12.2023, issued by the Respondent for the year 2017-2018, 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, concerning 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, thus violating the principles of natural justice and rendering the order liable for setting aside. Respondent's contention: The impugned assessment order was passed after issuing a show cause notice in DRC 01 on 29.09.2023, followed by subsequent reminders on 05.12.2023 and 22.11.2023. The respondent further argued that the petitioner possesses an appeal remedy under Section 107 of the GST Act, 2017, and should have availed it instead of directly approaching the High Court.