M/S. Pudukkottai City Municipal Corporation vs. The Joint Commissioner

Facts

The petitioner, M/s. Pudukkottai City Municipal Corporation, filed a writ petition challenging the Order-in-Original No. 08/2024-25-GST, dated 24.06.2024, passed by the Joint Commissioner of GST and Central Excise. The petitioner contended that the respondent failed to consider their reply, violating principles of natural justice. They also argued that the show-cause notice for five assessment years (2017-2018 to 2021-2022) was contrary to the GST Act and that the respondent failed to adhere to the statutory time limit under Section 74(10) of the GST Act. The respondent's counsel submitted that the petitioner has an alternative appeal remedy under Section 107 of the GST Act.

Held

The Court noted the submission by the learned Standing Counsel for the respondent that the petitioner has an available appeal remedy before the Commissioner of GST and Central Excise, 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 all grounds raised in the writ petition can be raised in the appeal. The appellate authority was directed to entertain the appeal if filed within two weeks from the date of receipt of the order, without insisting on the limitation period, and to dispose of the appeal in accordance with law within two months thereafter. No order as to costs was made.

Key Issues

1. Whether the Order-in-Original passed by the respondent is liable to be quashed for alleged violation of principles of natural justice, specifically for failure to consider the petitioner's reply, as per the petitioner's contention? 2. Whether the show-cause notice issued for the assessment years 2017-2018, 2018-2019, 2019-2020, 2020-2021, and 2021-2022 is contrary to the provisions of the GST Act, as argued by the petitioner? 3. Whether the respondent contravened the provisions of the GST Act by not adhering to the statutory time limit prescribed under Section 74(10) of the GST Act, as alleged by the petitioner? Petitioner's Arguments: The respondent failed to consider the reply filed by the petitioner, constituting a gross violation of the principles of natural justice. The show-cause notice for five assessment years was contrary to the GST Act. The respondent did not adhere to the statutory time limit under Section 74(10) of the GST Act. Respondent's Arguments: The petitioner has an appeal remedy before the Commissioner of GST and Central Excise, Trichy, under Section 107 of the GST Act, and should have invoked this remedy instead of approaching the High Court directly.