Tvl.Vetri Motors Private Limited vs. The State Tax Officer
Original PDF →Facts
The petitioner, The Vetri Motors Private Limited, filed a writ petition challenging an assessment order dated 27.09.2024 passed by the respondent, the State Tax Officer, Inspection Cell-V, Madurai. The assessment pertains to the financial year 2020-21. The petitioner contended that the assessment order was illegal as it violated Section 6(2) of the Tamil Nadu Goods and Services Tax Act, 2017. This contention was based on the fact that the central authority had also initiated proceedings for an audit for the same period by issuing a show cause notice on 06.06.2024. The respondent argued that their show cause notice was issued earlier, on 02.03.2024, and a personal hearing was conducted on 17.09.2024, prior to the central authority's notice.
Held
The Court found force in the contention of the learned Additional Government Pleader appearing for the respondent. The Court reasoned that the respondent had initiated their proceedings, including issuing a show cause notice and conducting a personal hearing, prior to the central authority issuing their notice for audit. Therefore, the respondent's action was not barred by Section 6(2) of the Tamil Nadu Goods and Services Tax Act, 2017. The Court held that there was no merit in entertaining the writ petition. The petitioner was granted liberty to approach the appellate authority under Section 107 of the Act. No issue was expressly left undecided.
Key Issues
1. Whether the assessment order passed by the respondent State Tax Officer for the year 2020-21 is illegal and in violation of Section 6(2) of the Tamil Nadu Goods and Services Tax Act, 2017, due to the initiation of audit proceedings by the central authority for the same period. Petitioner's contention: The petitioner argued that the impugned assessment order is in violation of Section 6(2) of the Act because the central authority had already initiated proceedings by issuing a show cause notice for an audit on 06.06.2024, covering the same assessment year. Therefore, the State's order is contrary to the said provision. Respondent's contention: The respondent argued that their show cause notice was issued much earlier, on 02.03.2024, and a personal hearing was conducted on 17.09.2024. The notice from the central authority was issued subsequently. Thus, the proceedings initiated by the respondent are not barred by Section 6(2) of the Act, and it is the central authority's notice that might be considered barred.
Sections Cited
Section 6(2), Section 107
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Before: and Dr.Thangaraj Salai, K.K.Nagar,
Learned counsel for the petitioner would submit that the impugned order is in violation of Section 6(2) of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”). He would contend that the central authority had also initiated proceedings by issuance of a show cause notice dated 06.06.2024 for conducting an audit. The present impugned order also covers the very same assessment year and therefore, he would submit that the impugned order is contrary to the provisions of Section 6(2) of the Act.
On the contrary, the learned Additional Government Pleader appearing on behalf of the respondent would submit that the show cause notice, upon which the impugned order had been passed, was issued as early as on 02.03.2024 and a personal hearing was also conducted as early as on 17.09.2024. Only thereafter, the notice had been issued by the central authority and therefore, the proceedings initiated by the _________ https://www.mhc.tn.gov.in/judis respondent cannot be said to have barred under Section 6(2) of the Act and in any case, it will be only the show cause notice dated 06.06.2024 issued by the central authority be barred.
I find force in the contention of the learned Additional Government Pleader appearing on behalf of the respondent. In such case, I do not find any merit in entertaining this writ petition and the Writ Petition is accordingly, dismissed. The petitioner would be at liberty to approach the appellate authority under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.
2024 NCC : Yes/No Index : Yes/No Internet : Yes abr To The State Tax Officer, Inspection Cell-V, Madurai, Commercial Taxes Building, Dr.Thangaraj Salai, K.K.Nagar, Madurai-625 020. _________ https://www.mhc.tn.gov.in/judis K.KUMARESH BABU, J. abr Dated: 12.11.2024 _________ 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.