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 July 24, 2024, issued by the Deputy State Tax Officer – 1, for the assessment year 2020-2021. 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 January 5, 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), Tirunelveli. 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 possesses an appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Tirunelveli. Consequently, the writ petition was disposed of with liberty granted to the petitioner 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 receipt of the order, the appellate authority shall entertain the appeal without considering the period of limitation and shall 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 July 24, 2024, passed by the Deputy State Tax Officer – 1 for the assessment year 2020-2021 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 sufficient opportunity, thus violating the principles of natural justice and rendering the order liable for setting aside. Respondent's contention: The respondent contended that a show cause notice was issued on January 5, 2023, followed by subsequent reminders on February 13, 2024, March 20, 2024, and June 18, 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 that the petitioner ought to have availed this remedy instead of directly approaching the High Court.