Tvl. Sitharevu Gramam vs. The Deputy State Tax Officer-1

Facts

The petitioner, Tvl. Sitharevu Gramam Aththikulam Kanmaai Pasana Vivasayigal Sangam, filed a writ petition before the Madurai Bench of the Madras High Court challenging an order dated 30.04.2024 passed by the Deputy State Tax Officer – 1, Nilakkottai Assessment Circle. The impugned order pertains to the assessment year 2018-2019. The petitioner contended that their auditor failed to file the return for the relevant period and that notices were only uploaded on the portal, not communicated directly, preventing them from filing a reply. The respondents argued that a show cause notice and personal hearing notices were issued, and the petitioner has 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 available appeal remedy before the Appellate Deputy Commissioner (ST) (GST Appeal), Madurai, under Section 107 of the GST Act, 2017. Consequently, the Court disposed of the writ petition, granting the petitioner liberty to approach the appellate authority. The petitioner is permitted to raise all grounds raised in the writ petition before the appellate authority. The Court further directed that if an appeal is filed within two weeks from the date of receipt of the order, it shall be entertained by the appellate authority without insisting on the limitation period. The appellate authority is to dispose of the appeal in accordance with law within three months thereafter. No order as to costs was made.

Key Issues

1. Whether the impugned order passed by the Deputy State Tax Officer – 1, Nilakkottai Assessment Circle, dated 30.04.2024, for the assessment year 2018-2019, is liable to be quashed on the grounds that the petitioner was not properly communicated the notices and thus unable to file a reply. Petitioner's contention: The petitioner argued that their auditor's failure to file the return and the non-receipt of direct communication of notices, which were only uploaded on the portal, prevented them from submitting a reply. They claimed they were unaware of the proceedings until the impugned order was passed. Revenue's contention: The respondent submitted that a show cause notice dated 26.12.2023 was issued, followed by personal hearing notices on 23.02.2024, 01.03.2024, and 22.04.2024. They asserted that the petitioner had an adequate appellate remedy under Section 107 of the GST Act, 2017, and should have availed it instead of directly approaching the High Court.