M/S. Arni Engineering Tech Private Limited vs. The State Tax Officer - 1 (Inspection)

Facts

The petitioner, Arni Engineering Tech Private Limited, filed a writ petition challenging an order dated 16.01.2025 passed by the first respondent, the State Tax Officer – 1 (Inspection). The impugned order pertains to the Assessment Year 2021-2022. The petitioner contended that an earlier order dated 05.09.2024, passed by the second respondent under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, was issued without any notice. Furthermore, the petitioner argued that the subsequent order dated 16.01.2025 was passed by the first respondent without invoking the procedure under Section 161 of the TNGST Act, 2017 for rectification, and crucially, without issuing any notice to the petitioner, thus violating the principles of natural justice. The respondents' counsel conceded that the matter could be remanded for reconsideration.

Held

The Court, after considering the submissions of both parties, decided to remand the matter back to the first respondent for fresh consideration. The primary reasoning for this decision was the petitioner's contention that the earlier assessment order was passed without affording sufficient opportunity of hearing, and that the subsequent order dated 16.01.2025 was passed without notice or in compliance with the procedure contemplated under Section 161 of the TNGST Act, 2017. The Court directed the first respondent to review the petitioner's case, taking these grievances into account. The first respondent is mandated to pass appropriate orders on merits and in accordance with law, after providing the petitioner with a due opportunity of hearing, within a period of four months from the date of receipt of a copy of this order. No specific finding was recorded on the merits of the petitioner's claim regarding the violation of Section 74 or Section 161, as the matter was remanded.

Key Issues

1. Whether the impugned order dated 16.01.2025, passed by the first respondent, is liable to be quashed for violation of the principles of natural justice, specifically for being passed without issuing notice to the petitioner, and for not following the procedure contemplated under Section 161 of the TNGST Act, 2017, when the earlier order dated 05.09.2024 was allegedly passed without notice under Section 74 of the TNGST Act, 2017? Petitioner's contentions: The petitioner argued that both the initial order dated 05.09.2024 and the subsequent order dated 16.01.2025 were passed in violation of the principles of natural justice. Specifically, the latter order was passed without issuing any notice to the petitioner and without adhering to the procedural requirements of Section 161 of the TNGST Act, 2017, for rectification of errors. Respondents' contentions: The learned Government Advocate for the respondents fairly submitted that the matter may be remanded back to the first respondent for reconsideration.