Tvl. New Santha Stores vs. The Deputy State Tax Officer - 1

Facts

The petitioner, Tvl. New Santha Stores, filed a writ petition before the Madurai Bench of the Madras High Court challenging an assessment order for the period 2019-2020, passed by the first respondent, the Deputy State Tax Officer – 1, Palayamkottai Circle, and a summary order by the second respondent, the Deputy Commercial Tax Officer, Palayamkottai Circle, both dated 31.08.2024. The petitioner contended that the assessment order was passed in violation of the principles of natural justice, as they were not provided with sufficient opportunity. The respondents argued that a show cause notice was issued on 23.05.2024 and 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 appellate remedy before the Deputy Commissioner (GST) (Appeal) (State Tax), Madurai and Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of by granting the petitioner liberty to approach 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 it without reference to the period of limitation and dispose of the same in accordance with law within three months thereafter. The Court made no order as to costs. The issue of whether the assessment order violated principles of natural justice was not directly decided but was to be raised before the appellate authority.

Key Issues

1. Whether the assessment order for the period 2019-2020, passed by the first respondent, is illegal and in gross violation of the principles of natural justice due to lack of sufficient opportunity for the petitioner? The petitioner argued that the impugned assessment order was passed without providing sufficient opportunity, thus violating the principles of natural justice, and therefore, it is liable to be set aside. The respondents contended that a show cause notice in Form GST DRC-01 was issued to the petitioner on 23.05.2024, and thus, there was no need for the Court to interfere. They further submitted that the petitioner possesses an alternative appellate remedy under Section 107 of the GST Act, 2017, and should have availed it instead of directly approaching the High Court.