Tvl. G. Sankar Timber Depot vs. The State Tax Officer (Adjudication)

Facts

The petitioner, Tvl.G.Sankar Timber Depot, filed a writ petition challenging an order in Form GST DRC-16 dated 20.11.2021, issued by the respondent, the State Tax Officer (Adjudication). This order was affixed on the petitioner's premises on 14.12.2021. The petitioner sought to quash this order and direct the respondent to comply with a previous High Court order dated 24.11.2021, which had disposed of miscellaneous petitions in writ appeals. The petitioner had previously filed writ petitions challenging assessment orders for 2017-2018, 2018-2019, and 2019-2020, which were remitted back by a single judge with a direction to pay Rs.3,00,000/- each. The petitioner's appeals against this were dismissed. The respondent subsequently issued the notice for attachment and sale of immovable property under Section 79 of the GST Act, 2017. The petitioner had also replied to this notice and another notice dated 14.02.2022, which attached bank accounts, and was directed to appear for a personal hearing.

Held

The Court held that the writ petition challenging the Form GST DRC-16 dated 20.11.2021 is belated and therefore liable to be dismissed. The Court noted that Form GST DRC-16 merely attaches immovable properties and there is no attachment of bank accounts. The Court observed that the petitioner appears to be in arrears of a huge amount of tax and is interested in dragging on the proceedings. It was further held that since the matter has been remitted back, it is not open for the petitioner to seek quashing of the Form GST DRC-16. The Court directed the respondent to proceed further in terms of the notice dated 14.02.2022 and bring the issue to a closure within three months from the date of receipt of a copy of the order. All further proceedings regarding the sale of immovable property or attachment of bank accounts will be subject to the final outcome of the proceedings contemplated in the notice dated 14.02.2022. The writ petition was disposed of in terms of these observations.

Key Issues

1. Whether the writ petition challenging the Form GST DRC-16 dated 20.11.2021 is belated and liable to be dismissed? The petitioner argued that the respondent had proceeded to issue the notice for attachment and sale of immovable property despite a previous court order dated 24.11.2021, and that the petitioner had made representations. The respondent contended that the writ petition challenging the Form GST DRC-16 is belated and that the petitioner appears to be in arrears of a huge amount of tax, and should participate in the proceedings before the respondent as directed by the notice dated 14.02.2022. The respondent also argued that Form GST DRC-16 merely attaches immovable properties and not bank accounts, and that it is not open for the petitioner to seek quashing of Form GST DRC-16 as the matter has been remitted back.