M/S.Aarathana Fuels vs. The Deputy State Tax Officer 1
Original PDF →Facts
The petitioner, M/s. Aarathana Fuels, filed a writ petition before the Madurai Bench of the Madras High Court challenging an assessment order dated 14.06.2024, passed by the Deputy State Tax Officer - 1, Karur, for the Assessment Year 2020-21. 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 23.08.2023, followed by personal hearing notices on 17.10.2023, 21.12.2023, and 17.05.2024, 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 has an appeal remedy before the Deputy Commissioner (GST), Erode, under Section 107 of the GST Act, 2017. Consequently, the writ petition was disposed of with liberty granted to the petitioner to approach the appellate authority. The petitioner was 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 the appeal without considering the period of limitation and dispose of it in accordance with the law within three months thereafter. No order as to costs was made.
Key Issues
1. Whether the assessment order dated 14.06.2024, passed by the respondent for the Assessment Year 2020-21, is liable to be quashed for being cryptic, non-speaking, illegal, arbitrary, and without jurisdiction, in violation of the principles of natural justice and Section 75(4) of the TNGST Act, 2017? Petitioner's contention: The petitioner argued that the assessment order was passed without providing a sufficient opportunity for a personal hearing, thus violating the principles of natural justice and Section 75(4) of the TNGST Act, 2017. They sought to quash the order and requested a fresh order after affording a personal hearing. Respondent's contention: The respondent contended that a show cause notice was issued, followed by multiple personal hearing notices, and therefore, the principles of natural justice were followed. They also pointed out that the petitioner has an alternative remedy of appeal under Section 107 of the GST Act, 2017, and should have availed it instead of approaching the High Court directly.
Sections Cited
Section 75(4), Section 107
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Before: and
This writ petition is filed challenging the assessment order passed by the respondent, dated 14.06.2024, for the Assessment Year 2020-2021. 2. With the consent of both sides, this Writ Petition is taken up for final disposal at the admission stage itself.
The learned counsel appearing for the petitioner submits that the order of assessment for the year 2020-2021 has been passed without providing sufficient opportunity to the petitioner, which according to the petitioner, is in violation to the principles of natural justice. Therefore, the order impugned in this writ petition, is liable to be set aside.
Mr.J.K.Jayaselan, learned Government Advocate appearing for the respondent submits that the impugned assessment order dated 14.06.2024 has been passed after issuing show cause notice in DRC 01 to the petitioner on 23.08.2023, followed by personal hearing notices dated 17.10.2023, 21.12.2023 ____________ https://www.mhc.tn.gov.in/judis and 17.05.2024 and therefore, there is no need to interfere with the impugned order. He further submits that the petitioner is having an appeal remedy before the Deputy Commissioner (GST), Erode, under Section 107 of the GST Act, 2017. However, without invoking the appeal remedy, the petitioner has straightaway approached this Court.
Recording the submission made by the learned Government Advocate that the petitioner is having an appeal remedy before the Deputy Commissioner (GST), Erode, under Section 107 of the GST Act, 2017, this writ petition is disposed of, with liberty to the petitioner to approach the appellate authority and raise all the grounds raised in this writ petition in the appeal. In the event, if any appeal is filed within a period of two weeks from the date of receipt of a copy of this order, the appellate authority shall entertain the appeal without reference to the period of limitation and dispose of the same in accordance with law, within a period of three months thereafter. There shall be no order as to costs. Consequently, connected Miscellaneous Petition is closed. NCC : Yes / No
2025 Index : Yes / No ____________ https://www.mhc.tn.gov.in/judis To:- The Deputy State Tax Officer - 1, Karur 4 Assessment Circle, Commercial Tax Buildings, Karur. ____________ https://www.mhc.tn.gov.in/judis VIVEK KUMAR SINGH
, J.
smn2
2025 ____________ https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.