M/S.Sri Sarguru Steel vs. The State Tax Officer

Facts

The petitioner, Sri Sarguru Steel, represented by its partners, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 06.08.2024, passed by the respondent, the State Tax Officer, Nilakkottai Assessment Circle. The petitioner contended that the assessment order for the assessment year 2019-2020 was passed in violation of the principles of natural justice, specifically without providing a sufficient opportunity to be heard. The respondent argued that a show cause notice (DRC 01) was issued on 21.05.2024, followed by personal hearing notices on 01.07.2024, 12.07.2024, and 23.07.2024, asserting that sufficient opportunity was provided. The respondent also pointed out that the petitioner had an alternative appellate remedy under Section 107 of the GST Act, 2017.

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an appeal remedy before the Deputy Commissioner (GST Appeal), Madurai, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of, granting liberty to the petitioner to approach the appellate authority. The Court directed that if the appeal is filed within two weeks from the date of receipt of the order, the appellate authority shall entertain it without reference to the period of limitation. The appellate authority was further directed to dispose of the appeal in accordance with the law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 06.08.2024, passed by the respondent for the assessment year 2019-2020, is liable to be quashed for violating the principles of natural justice by not providing a sufficient opportunity to the petitioner. The petitioner argued that the assessment order was passed without affording them a sufficient opportunity, thus violating the principles of natural justice, and sought its quashing. The respondent contended that the assessment order was passed after issuing a show cause notice and multiple personal hearing notices, thereby providing adequate opportunity. The respondent further argued that the petitioner possesses an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.