M/S. Vishakar Auto vs. The Deputy State Tax Officer-I

Facts

The petitioner, M/s.Vishakar Auto, represented by its Proprietor, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order dated 16.08.2024, passed by the Deputy State Tax Officer – I, Sankarankovil Circle, for the tax period 2019-2020. 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 to present their case. The respondent revenue authority argued that a show cause notice in Form DRC-01 was issued on 23.05.2024, followed by reminders, and that an appeal remedy was available under Section 107 of the TNGST Act, 2017.

Held

The Court noted the submission made by the learned Government Advocate for the respondent that the petitioner has an available appeal remedy before the appellate Deputy Commissioner (ST) (GST), Madurai and Tirunelveli, under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petition, granting liberty to the petitioner to approach the appellate authority. The Court directed that all grounds raised in the writ petition should be raised in the appeal. 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. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 16.08.2024, passed by the Deputy State Tax Officer – I, for the period 2019-2020, is liable to be quashed for gross violation of the principles of natural justice, specifically for not providing sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the impugned assessment order was passed without providing sufficient opportunity, thus violating the principles of natural justice and rendering the order liable for setting aside. Respondent's contention: The respondent contended that a show cause notice (DRC-01) was issued on 23.05.2024, followed by reminders on 26.06.2024, 06.07.2024, and 15.07.2024, indicating that an opportunity was provided. The respondent also pointed out that the petitioner has an alternative statutory remedy of appeal under Section 107 of the TNGST Act, 2017, before the appellate Deputy Commissioner (ST) (GST), Madurai and Tirunelveli, and that the petitioner had approached the High Court directly without availing this remedy.