M/S. Thangam Endo Supply Materials vs. The Deputy State Tax Officer Ii

Facts

The petitioner, M/s. Thangam Endo Supply Materials, represented by its Proprietrix S. Thangam, filed a writ petition challenging an assessment order dated June 20, 2023, issued by the Deputy State Tax Officer – II. The petitioner contended that due to ill-health and reliance on a part-time accountant who failed to ensure compliance, she was unable to participate in the adjudication proceedings, leading to an ex parte order. The respondent argued that a show cause notice was issued on November 14, 2022, followed by a personal hearing notice on March 2, 2023, and that the petitioner had an alternative appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (Appeal).

Held

The Court noted the submission of the learned Government Advocate regarding the availability of an appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (Appeal), Madurai. Consequently, the Court disposed of the writ petition, 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 Court directed that if an appeal is filed within two weeks of receiving a copy of the order, it shall be entertained by the appellate authority without reference to the period of limitation. The appellate authority was further directed 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 June 20, 2023, passed by the respondent is without jurisdiction and in clear violation of statutory provisions, warranting quashing under Article 226 of the Constitution of India? The petitioner argued that the ex parte assessment order was passed due to her ill-health and the failure of her accountant, preventing her participation in the proceedings. She sought to quash the order on grounds of lack of jurisdiction and statutory violation. The respondent contended that the assessment order was preceded by a show cause notice and a personal hearing notice, indicating due process was followed. The respondent further argued that the petitioner had an efficacious alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly via a writ petition.