M/S. Winner Agencies vs. The State Tax Officer

Facts

The petitioner, M/s. Winner Agencies, filed a writ petition challenging an assessment order dated 25.04.2024, passed by the respondent, the State Tax Officer, for the Assessment Year 2018-2019. 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 28.12.2023, and therefore, the order should not be interfered with. The respondent also pointed out that the petitioner has an appeal 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 (Appeal), Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of with liberty granted to the petitioner to approach 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 the appeal without reference to the period of limitation and dispose of the same in accordance with law within three months thereafter. The Court did not decide on the merits of the petitioner's challenge to the assessment order itself, but rather directed the petitioner to pursue the available statutory remedy.

Key Issues

1. Whether the ex parte assessment order dated 25.04.2024, passed by the respondent for the Assessment Year 2018-2019, is liable to be quashed on the grounds of lack of opportunity for the petitioner to participate in the proceedings, as argued by the petitioner? 2. Whether the petitioner's failure to exhaust the statutory appeal remedy under Section 107 of the GST Act, 2017, bars them from approaching the High Court under Article 226 of the Constitution, as contended by the respondent? Petitioner's arguments: The petitioner argued that the assessment order was passed ex parte due to the negligence of their accountant, preventing them from participating in the adjudication. They sought to quash the order and for a fresh assessment with an opportunity to be heard. Respondent's arguments: The respondent contended that a show cause notice was duly issued, and the petitioner had a statutory remedy of appeal under Section 107 of the GST Act, 2017, which they failed to pursue before approaching the High Court.