Tvl. Sri Maruthi Agencies vs. The Deputy State Tax Officer -1

Facts

The petitioner, Tvl. Sri Maruthi Agencies, represented by its Proprietor, filed a writ petition challenging an assessment order dated 29.12.2023, passed by the respondent, The Deputy State Tax Officer -1, Palani. The order pertains to the tax period July 2017 to March 2018. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that a show cause notice was issued on 27.09.2023, followed by personal hearing notices on 30.11.2023 and 06.12.2023, and that the petitioner has an alternative appeal remedy under Section 107 of the GST Act, 2017. The case was taken up for final disposal at the admission stage with the consent of both parties.

Held

The Court noted the submission of the learned Government Advocate that the petitioner possesses an appeal remedy before the Deputy Commissioner (GST Appeals), Madurai, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition with liberty to the petitioner to approach the appellate authority. The petitioner was granted permission to raise all grounds raised in the writ petition before the appellate authority. The appellate authority was directed to entertain the appeal if filed within two weeks from the date of receipt of the order, without reference to the period of limitation, and 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 29.12.2023, passed by the Deputy State Tax Officer -1 for the tax period July 2017 to March 2018, is liable to be quashed for violation of the principles of natural justice, specifically for not providing a sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the assessment order was passed without affording them a sufficient opportunity to present their case, thereby violating the principles of natural justice. They sought to quash the order and have a fresh assessment done after providing a personal hearing. Respondent's contention: The respondent contended that a show cause notice was issued on 27.09.2023, followed by personal hearing notices on 30.11.2023 and 06.12.2023. They also asserted that the petitioner has an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, and therefore, the writ petition should not be entertained.