M/S.Shasthiri Senthamarai Kannan vs. The Deputy Commercial Tax Officer (St)
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The petitioner, M/s.Shasthiri Senthamarai Kannan, filed a writ petition challenging an order dated 24.07.2023 passed by the Deputy Commercial Tax Officer (ST), Karur-I Assessment Circle. The petitioner, who provided man power supply and was a registered taxpayer, had closed his business in 2021 and had his GSTIN registration cancelled for non-filing of returns. The petitioner received a notice in Form ASMT 10 dated 21.12.2021 for the period 2018-2019, followed by a show cause notice in Form GST DRC-01 under Section 73 of the Act. This show cause notice indicated that the personal hearing date, time, and venue were 'Not Applicable'. Subsequently, an assessment order was passed on 24.07.2023, of which the petitioner was only served a summary, not the full order. The petitioner contended that the failure to grant a personal hearing vitiated the proceedings.
Held
The Court held that the assessment order dated 24.07.2023 was passed in violation of the principles of natural justice, specifically Section 75(4) of the TNGST Act, 2017, due to the failure to provide a personal hearing. The Court noted the respondent's submission that they would re-do the assessment after affording the petitioner a reasonable opportunity of hearing. Consequently, the Court directed the petitioner to appear before the respondent on 26.09.2024, along with their reply and supporting materials. The respondent was instructed to consider any objections or documents filed by the petitioner, grant an opportunity for a personal hearing, and thereafter pass appropriate orders in accordance with the law within four weeks. The Court also stipulated that if the petitioner failed to appear on the specified date, the impugned order would stand revived. The ratio decidendi is that failure to provide a mandatory personal hearing, as stipulated by law, renders the assessment order void.
Key Issues
1. Whether the assessment order dated 24.07.2023, passed by the respondent, is illegal, arbitrary, and without jurisdiction for violating principles of natural justice, specifically Section 75(4) of the TNGST Act, 2017, by failing to provide a personal hearing? The petitioner argued that the assessment order is vitiated due to the respondent's failure to grant a personal hearing, which is a mandatory requirement under Section 75(4) of the TNGST Act, 2017. The petitioner highlighted that the show cause notice itself indicated 'Not Applicable' for the date, time, and venue of the personal hearing. Furthermore, the petitioner contended that they were not served with the actual assessment order, only a summary. The respondent, through the learned Additional Government Pleader, conceded that the assessment would be re-done after affording the petitioner a reasonable opportunity of hearing.
Sections Cited
Section 75(4), Section 73
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Before: and
The present Writ Petition is filed challenging the impugned order dated 24.07.2023 on the ground that order is passed in violation of principles of natural justice.
It is submitted by the learned counsel for the petitioner that the petitioner had provided man power supply to various private entities in and around Karur District and the petitioner was a registered tax payer under GST Act. It is stated that the petitioner had closed his business since 2021 and GSTIN registration was also cancelled for non filing of returns. The petitioner was served with notice in Form ASMT 10 dated 21.12.2021 for the period 2018-2019, followed by show cause notice in Form GST DRC- 01 under Section 73 of the Act, wherein it was stated that the personal hearing shall be on the date, time and venue mentioned in the table below. However, the table with regard to date, time and venue of personal hearing states ''Not Applicable''. The relevant portion of the notice is extracted hereunder: 2/5 https://www.mhc.tn.gov.in/judis Sr. No. Description Particulars
Section under which show cause notice/statement is issued 73
Date by which reply has to be submitted 29/06/2023
Date of personal hearing NA
Time of personal hearing NA
Venue where personal hearing will be held NA
Thereafter, the order of assessment was made on 24.07.2023. The petitioner has been served with the summary of the order, however he has not been served with the order of assessment. It was submitted by the learned counsel for the petitioner that failure to grant personal hearing vitiates the entire proceedings. More so, the respondent has only passed the summary order without attaching any order of assessment.
It was submitted by the learned Additional Government Pleader for the respondent that the respondent would re-do the assessment after affording the petitioner a reasonable opportunity of hearing. It was further submitted that the petitioner may appear before the respondent on 26.09.2024, along with the reply and the materials in support of his case and the same is acceded to by the learned counsel for the petitioner. 3/5 https://www.mhc.tn.gov.in/judis
In view thereof, the petitioner may appear before the respondent on 26.09.2024, along with the reply and the materials in support of his contention. If any objections / documents are filed, the respondent shall consider the same and grant an opportunity of personal hearing to the petitioner and thereafter pass appropriate orders in accordance with law, within a period of four weeks therefrom. If the petitioner does not appear on the above date, the impugned order stand revived.
Accordingly, this Writ Petition is disposed of. No costs. Consequently, connected miscellaneous petitions are closed. 05.09.2024 NCC:yes/no Index:yes/no Internet:yes/no Nsr To: The Deputy Commercial Tax Officer (ST), Karur-I Assessment Circle, Commercial Taxes Buildings, Karur. 4/5 https://www.mhc.tn.gov.in/judis MOHAMMED SHAFFIQ, J. Nsr
2024 5/5 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.