Tvl Saratha Fancy A TO Z vs. The State Tax Officer

Facts

The petitioner, Tvl.Saratha Fancy A to Z, represented by its Proprietor Selva Kumar, filed a writ petition challenging an assessment order dated 19.07.2024 and a subsequent order dated 23.08.2024, both passed by the respondent, the State Tax Officer, Tirupathur Assessment Circle. These orders pertain to the tax period 2019-20. 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 was issued on 27.05.2024 and that 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 appeal remedy before the Deputy Commissioner (ST) (GST Appeals), Virudhunagar, 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 Court directed that if an appeal is filed within two weeks from the date of receipt of a copy of the 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 one month thereafter. The Court did not decide on the merits of the petitioner's claim regarding violation of natural justice or the validity of the assessment order itself, as it directed the petitioner to the appellate forum.

Key Issues

1. Whether the assessment order for the year 2019-20, passed by the respondent, is liable to be quashed for violation of the principles of natural justice due to insufficient opportunity provided to the petitioner, as argued by the petitioner? 2. Whether the petitioner has an effective alternative remedy of appeal under Section 107 of the GST Act, 2017, as contended by the respondent? Petitioner's Contention: The petitioner argued that the assessment order was passed without affording sufficient opportunity, thus violating the principles of natural justice, and therefore, the impugned order is illegal and devoid of merits. The petitioner sought to quash the orders and direct the respondent to redo the assessment proceedings. Respondent's Contention: The respondent submitted that a show cause notice was issued on 27.05.2024, and therefore, there was no need to interfere with the order. The respondent further contended that the petitioner has an appeal remedy before the Deputy Commissioner (ST) (GST Appeals) under Section 107 of the GST Act, 2017, and that the petitioner has directly approached the High Court without availing this remedy.