Cloudscape 15 Represented By Its Proprietor Mr Sanjay Dodeja vs. The Deputy State Tax Officer Formerly Known As Deputy Commercial Tax Officer

Facts

The petitioner, Cloudscape 15, represented by its Proprietor Sanjay Dodeja, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 28.08.2024, passed by the Deputy State Tax Officer for the assessment year 2019-2020. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondent revenue authority argued that a show cause notice (DRC 01) was issued on 29.05.2024, and the petitioner had an alternative appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (Appeal), Madurai.

Held

The Court noted the submission by the learned Government Advocate for the respondent that the petitioner has an appeal remedy before the Deputy Commissioner (ST) (Appeal), Madurai, 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 was directed to raise all grounds raised in the writ petition before the appellate authority. The Court further 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 reference to the period of limitation and dispose of it in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 28.08.2024, passed by the Deputy State Tax Officer 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 sufficient opportunity, thereby violating the principles of natural justice. They sought to quash the order as arbitrary and illegal. Respondent's contention: The respondent contended that a show cause notice in DRC 01 was issued to the petitioner on 29.05.2024, and therefore, the assessment order was validly passed. They further argued that the petitioner possesses an effective alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.