Veludurai C vs. The Deputy State Tax Officer-1

Facts

The petitioner, C. Veludurai, filed a writ petition before the Madurai Bench of the Madras High Court challenging an assessment order dated March 14, 2024, issued by the Deputy State Tax Officer – 1, for the assessment year 2019-2020. 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 was issued on July 3, 2023, followed by several reminders, and that the petitioner had an alternate remedy of appeal under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Tirunelveli. The petitioner had approached the High Court directly without availing this appellate remedy.

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an appeal remedy before the Deputy Commissioner (ST) (Appeal), Tirunelveli, 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 petitioner was 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 receiving a copy of the order, the appellate authority shall entertain the appeal without considering the period of limitation and shall dispose of the same in accordance with the law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated March 14, 2024, passed by the Deputy State Tax Officer – 1, for the assessment year 2019-2020, is liable to be quashed for violation of the 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 sufficient opportunity, thus violating the principles of natural justice, and therefore, the impugned order should be set aside. Respondent's contention: The respondent contended that a show cause notice was issued on July 3, 2023, followed by subsequent reminders on January 22, 2024, February 13, 2024, and February 26, 2024. The respondent further argued 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 directly approaching the High Court.