Essel Enterprises vs. The State Tax Officer
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The petitioner, Essel Enterprises, filed a writ petition challenging an order passed by the State Tax Officer, Tuticorin II Circle, under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017, for the assessment year 2017-2018. The petitioner contended that a show cause notice dated May 9, 2023, was sent via the web portal and went unnoticed, leading to their failure to respond. Consequently, the impugned assessment order dated August 25, 2023, was passed without the petitioner having an opportunity to present their case. The petitioner sought an opportunity to address the allegations in the show cause notice.
Held
The Court, with the consent of the learned Government Advocate for the respondents, allowed the writ petition. The impugned order dated August 25, 2023, was set aside, and the case was remitted back to the 1st respondent (State Tax Officer) for passing a fresh order on merits. This relief was granted subject to the petitioner depositing 10% of the disputed tax within 30 days of receiving the order. The 1st respondent was directed to dispose of the show cause notice dated May 9, 2023, within 60 days thereafter, ensuring the petitioner was heard. The Court also stipulated that if the petitioner failed to cooperate or comply with the conditions, the order would stand vacated, and the petition would be treated as dismissed. The ratio decidendi is that procedural fairness and the opportunity to be heard are paramount, and where a party demonstrates a genuine lack of notice, a fresh opportunity may be granted, albeit with conditions.
Key Issues
1. Whether the petitioner should be granted an opportunity to respond to the show cause notice dated May 9, 2023, given that it was allegedly not noticed by the petitioner when sent via the web portal? (Question of mixed law and fact, turning on principles of natural justice and procedural fairness under the GST Act). Petitioner's arguments: The petitioner argued that due to the show cause notice being sent through the web portal and going unnoticed, they were deprived of a fair opportunity to present their defense. They prayed for a single opportunity to address the allegations. Respondents' arguments: The learned Government Advocate for the respondents consented to the disposal of the writ petition with certain conditions, indicating an acceptance of the petitioner's plea for a fresh opportunity, subject to compliance.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R This Writ Petition has been filed for issuance of a Writ of Certiorari to call for the records pertaining to the impugned order of the 1st respondent in his impugned order in order No.GSTN: 33ADVPL8372NIZM/2017-2018 dated 25.08.2023 and quash the same.
The petitioner has challenged the impugned assessment order passed under Sec.73 of the Tamil Nadu Goods and Services Tax Act, 2017 vide No.GSTN: 33ADVPL8372NIZM/2017-2018 dated 25.08.2023 for the assessment year 2017-2018. It is the specific case of the petitioner that the show cause notice was sent in the web portal which went unnoticed by the petitioner and thus the petitioner failed to the reply to the aforesaid show cause notice dated 09.05.2023. Hence, the petitioner prays one opportunity be given to the petitioner to meet out the allegations in the show cause notice dated 09.05.2023. _____________ Page No. 2 of 5 https://www.mhc.tn.gov.in/judis
Having considered the submissions made by the learned counsel for the petitioner and the submission of the learned Government Advocate for the respondents, with the consent of the learned Government Advocate appearing for the respondents, this Writ Petition is disposed of at the time of admission by setting aside the impugned order and remitting the case back the case to the 1st respondent to pass a fresh order on merits and in accordance with law subject to the petitioner depositing 10% of the disputed tax to the credit of the department within a period of 30 days from the date of receipt of a copy of this order. Subject to such compliance, the 1st respondent shall dispose of the show cause notice dated 09.05.2023 within a period of 60 days thereafter. Needless to state, the petitioner shall be heard. It is also made clear that petitioner shall co-operate with the 1st respondent and in case the petitioner fails to co-operate with the 1st respondent, the 1st respondent is at liberty to pass orders on merits based on the available material. It is also made clear that in case if the petitioner fails to comply with the conditions of this order, this order will stand automatically vacated sine die and will be treated as having been dismissed. _____________ Page No. 3 of 5 https://www.mhc.tn.gov.in/judis
Accordingly, this Writ Petition is allowed with the above observations. No costs. Consequently, connected miscellaneous petitions are closed. 08.04.2024 Index: Yes/ No Neutral Citation: Yes / No kpr Copy To 1.The State Tax Officer Commercial Tax Department Tuticorin II Circle Tuticorin District
The Assistant Commissioner (ST) Tuticorin II Circle Tuticorin District _____________ Page No. 4 of 5 https://www.mhc.tn.gov.in/judis C.SARAVANAN
, J.
kpr & W.M.P.(Md).Nos.8056 and 8058 of 2024 08.04.2024 _____________ Page No. 5 of 5 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.