M/S. Kj And Co vs. The State Tax Officer (St)

Facts

The petitioner, M/s. K.J. & Co., filed a writ petition challenging an assessment order dated 22.08.2024, passed by the respondent, the State Tax Officer, for the Assessment Year 2019-20. The petitioner contended that due to a lack of knowledge about GST and limited portal access, they relied on a part-time accountant who failed to inform them about the assessment proceedings. Consequently, the petitioner was unable to participate in the adjudication, leading to an ex parte order. The respondent argued that a show cause notice (DRC-01) was issued on 27.05.2024, followed by a personal hearing notice on 10.08.2024, and that the petitioner had an alternative appeal remedy under Section 107 of the GST Act, 2017.

Held

The Court noted the respondent's submission that the petitioner has an appeal remedy available before the Deputy Commissioner (ST) (Appeals), Trichy, 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 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 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 22.08.2024, passed by the respondent for the Assessment Year 2019-20, is liable to be quashed on the grounds of lack of opportunity and jurisdiction, as argued by the petitioner? 2. Whether the petitioner, having failed to participate in the assessment proceedings, should be relegated to the statutory appeal remedy under Section 107 of the GST Act, 2017, as contended by the respondent? Petitioner's arguments: The petitioner argued that the assessment order was illegal, arbitrary, and without jurisdiction because they were not afforded sufficient opportunity to participate in the proceedings due to reliance on a part-time accountant who failed to inform them. They sought to quash the order and have a fresh assessment after being issued a proper notice. Respondent's arguments: The respondent contended that the assessment order was passed after issuing a show cause notice and a personal hearing notice, thus complying with procedural requirements. They further argued that the petitioner has an available statutory remedy of appeal before the Deputy Commissioner (ST) (Appeals) under Section 107 of the GST Act, 2017, and should have availed it instead of directly approaching the High Court.