Tvl. Rajas vs. Deputy State Commercial Tax Officer - I

Facts

The petitioner, Tvl. Rajas, represented by its Proprietor Mr. S. Syed Ibrahim, filed a writ petition before the Madurai Bench of the Madras High Court. The petition challenged an assessment order passed by the respondent, the Deputy State Commercial Tax Officer - I, Tirunelveli Town, in Form GST DRC-07, dated 28.08.2024. The petitioner contended that the assessment order for the year 2021-2022 was passed without providing sufficient opportunity, violating principles of natural justice. The respondent argued that a show cause notice in DRC 01 was issued on 12.03.2024, and an appeal remedy under Section 107(1) of the GST Act, 2017, was available to the petitioner.

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an appeal remedy before the Deputy Commissioner (GST), Madurai and Tirunelveli, under Section 107(1) of the GST Act, 2017. Consequently, the writ petition was disposed of, granting the petitioner liberty to approach the appellate authority. The Court directed that all grounds raised in the writ petition should be raised in the appeal. The appellate authority was instructed to entertain the appeal if filed within two weeks from the receipt of the order, without insisting on the limitation period, and to dispose of the appeal in accordance with law within one month thereafter. The Court made no order as to costs.

Key Issues

1. Whether the assessment order passed by the respondent for the year 2021-2022 is liable to be quashed for violation of the principles of natural justice due to insufficient opportunity provided to the petitioner? Petitioner's Contention: The petitioner argued that the assessment order was passed without affording them sufficient opportunity to present their case, thus violating the principles of natural justice and rendering the order arbitrary, unjust, and illegal. Respondent's Contention: The respondent contended that a show cause notice (DRC 01) was issued to the petitioner on 12.03.2024, and therefore, the assessment order was passed after due process. The respondent also highlighted that the petitioner had an alternative statutory remedy of appeal under Section 107(1) of the GST Act, 2017, before the Deputy Commissioner (GST Appeals).