M/S. Thamarai Builders vs. The State Tax Officer - 1

Facts

The petitioner, M/s.Thamarai Builders, filed a writ petition challenging two orders issued by the respondent, the State Tax Officer - 1, Pudukkottai. The first order, dated 30.08.2024, was issued under Section 73 of the TNGST Act, 2017, and the second, dated 19.11.2024, was issued under Section 161 of the TNGST Act, 2017. Both orders pertain to the assessment year 2019-2020. The petitioner contended that the assessment orders were passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that show cause notices and personal hearing notices were issued, and the petitioner had an alternative 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 available appeal remedy before the appellate Deputy Commissioner (ST) (GST), Trichy, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of by granting liberty 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 the order, the appellate authority shall entertain it 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. The Court made no order as to costs. The issue of whether the assessment orders violated principles of natural justice or whether the certificate from the Divisional Engineer should be considered was not directly decided by the High Court, as it directed the petitioner to pursue the appellate remedy.

Key Issues

1. Whether the assessment orders dated 30.08.2024 and 19.11.2024, issued under Sections 73 and 161 of the TNGST Act, 2017 respectively, for the assessment year 2019-2020, are liable to be quashed for violation of the principles of natural justice due to lack of sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the assessment orders were passed without affording sufficient opportunity, thus violating the principles of natural justice, and sought to quash these orders. They also sought to direct the respondent to pass a fresh order considering a certificate dated 19.09.2024 issued by the Divisional Engineer, Highways C and M, Pudukkottai. Respondent's contention: The respondent contended that show cause notices were issued on 22.05.2024, followed by reminders and personal hearing notices on various dates. They argued that sufficient opportunity was provided and that the petitioner has an alternative remedy of appeal under Section 107 of the GST Act, 2017, before the appellate Deputy Commissioner (ST) (GST), Trichy, and therefore, the writ petition should not be entertained.