Tvl. Sudharsan Traders vs. The State Tax Officer

Facts

The petitioner, Tvl.Sudharsan Traders, represented by its Proprietor Vaikuntadurai Ramesh, filed a writ petition challenging an assessment order dated 14.10.2023 passed by the respondent, The State Tax Officer, Tuticorin II Assessment Circle. The assessment order pertains to the tax period 2017-18. The petitioner sought to quash the impugned order and requested the respondent to redo the assessment proceedings. The procedural history involves the issuance of the assessment order by the respondent authority.

Held

The Court held that the impugned assessment order dated 14.10.2023 for the assessment year 2017-18 was liable to be set aside. This decision was based on a prior ruling by the same Court in a batch of writ petitions (W.P.(MD) No.26481 of 2024 etc., dated 06.01.2025). The precedent established that assessees have a right to receive notice through the modes specified in clauses (a), (b), and (c) of Section 169(1) of the Central Goods and Services Tax Act, 2017. As this principle applied to the present case, the Court found the assessment order to be flawed. The Court directed the petitioner to submit their reply to the show cause notice within two weeks from the date of the order. Subsequently, the respondent was instructed to provide an opportunity of hearing to the petitioner and pass a fresh order on merits and in accordance with law. Any bank attachment made in relation to this matter was also ordered to be raised.

Key Issues

1. Whether the assessment order dated 14.10.2023 for the year 2017-18 is illegal and devoid of merits, necessitating its quashing and a direction for redo of assessment proceedings, under Article 226 of the Constitution of India? The petitioner argued that the assessment order was illegal and sought its quashing. The respondent, represented by the Additional Government Pleader, did not record any specific arguments in the judgment. However, the Court's decision was based on a previous order in a batch of writ petitions (W.P.(MD) No.26481 of 2024 etc., dated 06.01.2025), which held that assessees are entitled to service of notice in modes prescribed under clauses (a), (b), and (c) of Section 169(1) of the Central Goods and Services Tax Act, 2017. This precedent was deemed applicable to the present case.