M/S. Tvl Chellam Motors Private Limited vs. The State Tax Officer V (Roving Squad)
Original PDF →Facts
The petitioner, Tvl. Chellam Motors Private Limited, filed a writ petition challenging an assessment order for the year 2021-22, a rejection order of a rectification application, and a consequential Form GST DRC-07. These orders were passed by the State Tax Officer-V (Roving Squad) and the Commercial Tax Officer, both of the Intelligence Trichy Division. The petitioner contended that the assessment order was arbitrary and contrary to Section 168A of the Central Goods and Services Tax Act, 2017, and violative of constitutional provisions. The impugned orders were dated September 30, 2024, and December 5, 2024.
Held
The Court held that the impugned order suffers from the vice of arbitrariness. The reasoning was that a perusal of the order revealed that the Assessing Officer had not made any determination of the tax payable by the petitioner as envisaged under Section 74 of the Act. Additionally, the Assessing Officer had not followed the guidelines issued in the Circular dated 29.08.2024 of the Commissioner of State Tax. Therefore, the Court found that the order was liable to be interfered with. The writ petition was allowed, the impugned order was set aside, and the matter was remitted back to the first respondent for fresh consideration. The petitioner was directed to file a reply with supporting documents within two weeks, and the first respondent was to provide a hearing and pass a reasoned order within eight weeks thereafter.
Key Issues
1. Whether the Assessing Officer followed the procedure prescribed under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, in issuing the order of demand? 2. Whether the Assessing Officer followed the guidelines issued in Circular No. 8/2024, dated 29.08.2024, of the Commissioner of State Tax while issuing the order of demand? Petitioner's arguments: The petitioner argued that the Assessing Officer failed to invoke the provisions of Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, which requires a determination by the Assessing Officer of the proposal made in the show cause notice. Furthermore, the petitioner contended that the Assessing Officer did not follow the circular issued by the Commissioner, State Tax, dated 29.08.2024. Respondents' arguments: The judgment does not record any specific arguments made by the respondents.
Sections Cited
Section 74, Section 168A
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Before: and
The challenge in the writ petition is to the assessment order of the year 2021-22. 2. The Primordial contention of the learned counsel for the petitioner is that neither the provisions of Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”) _________ https://www.mhc.tn.gov.in/judis which envisages a determination by the Assessing Officer of the proposal made under the show cause notice has been invoked, nor the circular issued by the Commissioner, State Tax, Commercial Taxes Department, Ezhilagam, Chennai, in Circular No.8/2024, dated 29.08.2024 has been followed by the Assessing Officer while issuing the order of demand.
A perusal of the order impugned herein would also show that the Assessing Officer had not made any determination of the tax payable by the petitioner as envisaged under Section 74 of the Act, nor has followed the guidelines issued in Circular dated 29.08.2024 of the Commissioner of State Tax. In such view of the matter, I am of the view that the order impugned suffers from vice of arbitrariness. For the said reason, the order impugned is liable to be interfered with.
In fine, this Writ Petition is allowed, the impugned order is set aside and the matter is remitted back to the first respondent for fresh consideration. The petitioner shall file his reply along with supporting documents within a period of two weeks from the date of receipt of a _________ https://www.mhc.tn.gov.in/judis copy of this order and thereafter, the first respondent shall provide an opportunity of hearing to the petitioner and pass a reasoned order on merits and in accordance with law within a period of eight weeks thereafter. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
2025 NCC : Yes/No Index : Yes/No Internet : Yes abr To 1.The State Tax Officer-V (Roving Squad), Office of the Joint Commissioner (ST), Commercial Taxes Department, Intelligence Trichy Division, Trichy-620 008. 2.The Commercial Tax Officer, Office of the Joint Commissioner (ST), Commercial Taxes Department, Intelligence Trichy Division, Trichy-620 008. _________ https://www.mhc.tn.gov.in/judis K.KUMARESH BABU, J. abr Dated: 21.01.2025 _________ 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.