M/S. S.S.V. Tools vs. The Deputy State Tax Officer

Facts

The petitioner, M/s.S.S.V. Tools, filed a writ petition challenging an assessment order dated 15.07.2024 passed by the Deputy State Tax Officer under Section 73 of the TNGST Act, 2017, for the Assessment Year 2019-20. The petitioner also challenged consequential proceedings dated 14.02.2025 passed under Section 161 of the Act. The petitioner contended that due to an error by their part-time accountant, GST paid on purchase bills was incorrectly entered under the ISD column, leading to the assessment order. A rectification application filed by the petitioner was rejected without a personal hearing, and the petitioner's bank account was attached. The respondent argued that a show cause notice was issued and that the petitioner had an 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), Tirunelveli, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition with liberty to the petitioner to approach the appellate authority and raise all grounds raised in the writ petition. The Court directed the appellate authority to entertain the appeal if filed within two weeks from the date of receipt of the order, without reference to the period of limitation, and to dispose of the same within three months thereafter. Pending disposal of the appeal, the respondent was directed to maintain the status quo. The Court did not decide the merits of the petitioner's challenge to the assessment order or the consequential proceedings.

Key Issues

1. Whether the assessment order and consequential proceedings passed by the respondent are illegal, arbitrary, and without jurisdiction, warranting quashing. This issue turns on the interpretation and application of Section 73 and Section 161 of the TNGST Act, 2017, and principles of natural justice. Petitioner's arguments: The petitioner argued that the impugned orders are liable to be set aside due to an inadvertent error in GST entry, the rejection of their rectification application without a personal hearing, and the attachment of their bank account. They sought to quash the orders and requested a fresh assessment after affording sufficient opportunity. Respondent's arguments: The respondent contended that the assessment order was passed after issuing a show cause notice and that the petitioner has an alternative remedy of appeal under Section 107 of the GST Act, 2017, and therefore, the writ petition should not be entertained.