Tvl.Sri Maruthi Traders vs. The State Tax Officer

Facts

The petitioner, Tvl.Sri Maruthi Traders, represented by its Proprietor D.Jeevaraj, filed a writ petition challenging an assessment order dated 07.06.2023, passed by the respondent, the State Tax Officer, for the period 2017-2021. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating the principles of natural justice. The respondent argued that a show cause notice was issued on 08.02.2023, followed by a personal hearing notice on 14.03.2023, and that the petitioner had an alternative remedy of appeal under Section 107 of the GST Act, 2017, before the appellate Deputy Commissioner (ST) (GST Appeals), Madurai. The petitioner had approached the High Court directly without availing this appellate remedy.

Held

The Court noted the submission of the learned Government Advocate that the petitioner possesses an appeal remedy under Section 107 of the GST Act, 2017, before the Deputy Commissioner (ST) (GST Appeals), Madurai. Consequently, the writ petition was disposed of by granting the petitioner liberty to approach the appellate authority. The Court directed that all grounds raised in the writ petition could be raised in the appeal. The appellate authority was instructed to entertain the appeal, even if filed beyond the period of limitation, provided it is filed within two weeks from the date of receipt of the Court's order. The appeal is to be disposed of on merits within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 07.06.2023, passed by the respondent for the period 2017-2021, is liable to be quashed for violation of the principles of natural justice, specifically for not providing sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the assessment order was passed without sufficient opportunity, thus violating the principles of natural justice and rendering the order illegal and devoid of merits. They sought to quash the order and direct the respondent to redo the assessment proceedings. Respondent's contention: The respondent contended that a show cause notice was issued on 08.02.2023, followed by a personal hearing notice on 14.03.2023, indicating that an opportunity was provided. The respondent further argued that the petitioner has an efficacious alternative remedy of appeal under Section 107 of the GST Act, 2017, and that the petitioner should have availed this remedy instead of directly approaching the High Court.