Tvl. Heerthanaas vs. The Proper Officer

Facts

The petitioner, Tvl. Heerthanaas, represented by its Proprietor Poopathy Mahendran, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 28.12.2023, passed by the respondent, the Proper Officer, Rajapalayam 1 Assessment Circle, Virudhunagar District. The assessment order pertains to the financial year 2017-2018. The petitioner sought to quash this order and requested the respondent to redo the assessment proceedings. The petitioner's primary contention was that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice.

Held

The Court noted the submission made by the learned Government Advocate for the respondent that the petitioner possesses an alternative appellate remedy under Section 107 of the GST Act, 2017, before the appellate Deputy Commissioner (ST) (GST Appeals), Madurai. Consequently, the Court disposed of the writ petition, 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 a copy of this order, the appellate authority shall entertain it without reference to the period of limitation. The appellate authority is further directed to dispose of the appeal in accordance with law within three months thereafter. The Court made no order as to costs.

Key Issues

1. Whether the assessment order dated 28.12.2023, passed by the respondent for the year 2017-2018, is illegal and liable to be quashed for violation of the principles of natural justice, as argued by the petitioner? 2. Whether the petitioner has an alternative efficacious remedy under Section 107 of the GST Act, 2017, as contended by the respondent? The petitioner argued that the impugned assessment order was passed without affording sufficient opportunity, thus violating the principles of natural justice, and therefore, it should be set aside. The respondent argued that a show cause notice was issued on 29.09.2023, followed by personal hearing notices on 29.10.2023, 07.12.2023, and 19.12.2023, indicating that due process was followed. The respondent further submitted that the petitioner has an appeal remedy under Section 107 of the GST Act, 2017, before the appellate Deputy Commissioner (ST) (GST Appeals), Madurai, and that the petitioner should have availed this remedy instead of approaching the High Court directly.