Tvl. Yes Vee Agencies vs. The Commissioner Of Commercial Taxes

Facts

The petitioner, Tvl.YES VEE Agencies, represented by its partner V.Thangaraj, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 13.11.2024 passed by the State Tax Officer, Sattur Assessment Circle, for the assessment year 2020-2021. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondents, represented by the Commissioner of Commercial Taxes and the State Tax Officer, argued that a show cause notice was issued on 11.11.2022, 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 has an available appeal remedy before the Deputy Commissioner (ST) (Appeal), Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition by granting the petitioner liberty to approach the appellate authority. The petitioner is 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 receipt of the order, the appellate authority shall entertain the appeal without considering the period of limitation. The appellate authority is 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 dated 13.11.2024, passed by the State Tax Officer 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? The petitioner argued that the assessment order was passed without affording them adequate opportunity to present their case, thus contravening the principles of natural justice. The petitioner sought to quash the impugned order on this ground. The respondents contended that the assessment order was passed after issuing a show cause notice on 11.11.2022, followed by subsequent reminders dated 06.03.2023 and 28.10.2024. They further argued that the petitioner possesses an effective alternative remedy of appeal before the Deputy Commissioner (ST) (Appeal), Tirunelveli, under Section 107 of the GST Act, 2017, and therefore, the writ petition should not be entertained.