Tvl. Rk Diagnostic Supplies vs. The Assistant Commissioner (St)

Facts

The petitioner, Tvl. R.K. Diagnostic Supplies, represented by its Proprietor, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 30.08.2024, passed by the respondent, the Assistant Commissioner (ST), for the tax period 2019-2020. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that a show cause notice (DRC-01) was issued on 27.05.2024, followed by a reminder on 22.08.2024, and that 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 possesses an appeal remedy before the appellate Deputy Commissioner (State Tax) (GST Appeal), Madurai, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition with liberty granted to the petitioner to approach the appellate authority. The petitioner is 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 from the date of receipt of the order, the appellate authority shall entertain it without reference to the period of limitation and dispose of it in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 30.08.2024, passed by the respondent for the year 2019-2020, is liable to be quashed for violation of the principles of natural justice due to insufficient opportunity provided to the petitioner? Petitioner's contention: The petitioner argued that the assessment order was passed without affording them sufficient opportunity to present their case, thereby violating the principles of natural justice. They relied on the general principle that a fair hearing is a fundamental right. Respondent's contention: The respondent contended that the assessment order was validly passed after issuing a show cause notice (DRC-01) on 27.05.2024 and a subsequent reminder on 22.08.2024. They further argued that the petitioner had an alternative statutory remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.