Tvl. Dra. Sp. Vm. Joint Venture vs. The State Tax Officer

Facts

The petitioner, DRA.SP.VM.Joint Venture, represented by its Partner V.Manoharan, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated July 23, 2024, and a subsequent rectification order dated October 14, 2024, both passed by the respondent, the State Tax Officer, Ramanathapuram Assessment Circle. These orders pertained to the assessment year 2022-23. The petitioner sought to quash these orders and requested a direction for the respondent to redo the assessment proceedings. The prayer was amended by an order of the Court dated April 2, 2025.

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an alternative statutory remedy of appeal before the Deputy Commissioner (ST) (GST Appeals), Ramanathapuram, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition by granting the petitioner liberty to approach the appellate authority. The petitioner was permitted 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 Court's order, irrespective of the period of limitation, and to dispose of the appeal within one month thereafter, in accordance with the law. No order as to costs was made.

Key Issues

1. Whether the assessment order and rectification order for the year 2022-23 were passed in violation of the principles of natural justice due to insufficient opportunity provided to the petitioner? (Question of law and fact, concerning principles of natural justice and procedural fairness). Petitioner's Contention: The petitioner argued that the assessment order and rectification order were passed without affording them sufficient opportunity, thus violating the principles of natural justice and rendering the orders illegal and devoid of merit. Respondent's Contention: The respondent contended that a show cause notice in DRC-01 was issued to the petitioner on February 27, 2024, prior to the assessment order, and therefore, there was no need for the Court to interfere. The respondent also pointed out that the petitioner has an alternative statutory remedy of appeal before the Deputy Commissioner (ST) (GST Appeals), Ramanathapuram, under Section 107 of the GST Act, 2017, and that the petitioner had directly approached the High Court without availing this remedy.