Tvl Kanagavel Associates vs. The Deputy State Tax Officer-1

Facts

The petitioner, Tvl. Kanagavel Associates, represented by its Proprietor K. Rajesh, filed a writ petition before the Madurai Bench of the Madras High Court challenging an assessment order dated August 31, 2024, passed by the Deputy State Tax Officer - 1, Madurai. The assessment order pertains to the assessment year 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 May 24, 2024, and that the petitioner has an alternative remedy of appeal under Section 107 of the GST Act, 2017.

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an appellate remedy under Section 107 of the GST Act, 2017, before the appellate Deputy Commissioner (State Tax) (GST Appeal), 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 should be presented in the appeal. Furthermore, the appellate authority was instructed to entertain the appeal if filed within two weeks from the date of receiving the order, irrespective of the limitation period, and to dispose of the appeal within two months thereafter, in accordance with the law. No order as to costs was made.

Key Issues

1. Whether the assessment order dated 31.08.2024, passed by the respondent for the assessment year 2019-2020, is illegal, without jurisdiction, and in gross violation of the Principles of Natural Justice, as contended by the petitioner? The petitioner argued that the assessment order was passed without affording them a sufficient opportunity to be heard, thus contravening the principles of natural justice. They sought to quash the order and have a fresh assessment done with a personal hearing. The respondent contended that a show cause notice was issued on 24.05.2024, and therefore, the assessment order was passed after due process. They further argued that the petitioner has an efficacious alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of directly approaching the High Court.