N.A. Lakshmi Erectors vs. The Deputy Commissioner (Enforcement)
Original PDF →Facts
The petitioner, N.A. Lakshmi Erectors, a registered contractor, entered into an agreement with the Superintending Engineer Mechanical I, Tuticorin Thermal Power Station for coal removal and cleaning services. The petitioner failed to file GSTR-3B returns and discharge tax liabilities for the relevant period. Consequently, the first respondent, the Deputy Commissioner (Enforcement), issued a show cause notice on December 29, 2021, demanding a total of Rs. 4,94,632/- (Rs. 2,47,316/- as SGST and Rs. 2,47,316/- as CGST). The petitioner submitted a representation on May 2, 2022, but received no opportunity to explain. This writ petition was filed to quash the notice and restore the petitioner's GST registration.
Held
The Court noted the petitioner's submission that they intended to deposit 10% of the total tax amount within three weeks and then file an appeal before the Appellate Authorities as per Section 107(6)(b) of the Central Goods and Services Tax Act. Recording this submission, the Court directed the petitioner to deposit 10% of the total tax amount within three weeks from June 20, 2022, and to make submissions before the Appellate Authorities. Based on this arrangement, the writ petition was dismissed. The Court did not decide on the merits of the petitioner's case regarding the opportunity to be heard or the validity of the demand notice itself, but rather disposed of the petition based on the petitioner's stated intention to pursue the appellate remedy.
Key Issues
1. Whether the petitioner is entitled to have the impugned notice dated 29.12.2021 quashed and their GST registration restored, considering the lack of opportunity to explain their position? The petitioner argued that they were not given an opportunity to explain the reasons for non-filing of returns and non-payment of taxes, which led to the impugned notice and the demand for tax. They contended that the present writ petition was filed due to this lack of opportunity. The respondents, represented by the Special Government Pleader, did not record any specific arguments in the judgment. However, the court's subsequent direction implies a procedural path for the petitioner.
Sections Cited
Section 107(6)(b)
AI-generated summary — verify with the full judgment below
Before: and
This Writ Petition has been filed to quash the impugned notice passed by the first respondent in Reference No.220112200219020 dated 29.12.2021 and consequently, direct the respondents to restore the petitioner's GSTIN of registration No.33ADNPK9193QIZK dated 01.07.2017 by considering the petitioner's representation dated 02.05.2022. 2.The case of the petitioner is that the petitioner is the proprietor of one N.A.Lakshmi Erectors and he is a registered contractor. The Superintending Engineer Mechanical I, Tuticorin, Tuticorin Thermal Power Station, which is under the control of Tamilnadu Generation and Distribution Corporation limited and he had entered with an agreement to Thermal Power Station for the purpose of removal, cleaning and disposal of the spilled and accumulated coal in Conveyor 22/23, 28A/B, 36A/B area, conveyor equipment cleaning, etc., For this agreement, the petitioner failed to file 1/2 https://hcservices.ecourts.gov.in/hcservices/ GSTR3B returns and discharge his tax liabilities. Hence, a show cause notice was issued on 29.12.2021 by the first respondent in Reference No.22011220219020, demanding a sum of Rs.2,47,316 as State Goods and Service Tax and a sum of Rs.2,47,316 as Central Goods and Service Tax, in total, the petitioner has to pay a sum of Rs.4,94,632/-. Thereafter, the petitioner had approached the concerned officer, sent representation on 02.05.2022. Since there is no opportunity being given to explain the reason, the present Writ Petition is filed seeking aforesaid relief. 3.Heard the learned counsel appearing for the petitioner and the learned Special Government Pleader appearing for the respondents. 4.When the matter is taken up for hearing today (ie. 17.06.2022), the learned counsel appearing for the petitioner submitted that the petitioner would deposit 10% of the total amount of tax within a period of three (3) weeks and file appeal before the Appellate Authorities as per Section 107 (6) (b) of Central Goods and Services Tax Act. 5.Recording the same, the petitioner is directed to deposit 10% of the total amount of tax, within a period of three (3) weeks from 20.06.2022 and he would make submission before the Appellate Authorities. 6.In view of the above, this writ petition is dismissed. There shall be no order as to costs. Consequently, the connected writ miscellaneous petitions are closed. Assistant Registrar (CS I) //// 17/06/2022 Sub Assistant Registrar(CS) vsg To: 1.The Deputy commissioner (Enforcement), Deputy State Tax Officer 2 (Circle), Commercial Tax Department, C.T.Building, No.282-A,Beach Road, Tuticorin-628 001. 2.The Deputy Commissioner, Commercial Tax Department, Reserve Line Road, Palayamkottai,Tirunelveli District. +1 CC to M/s.R. JEGADEESWARAN, Advocate ( SR-26459[F] dated 17/06/2022 )
and W.M.P.(MD).Nos.8636 and 8637 of 2022 17.06.2022 MGJ(17.06.2022) 2P 4C 2/2 https://hcservices.ecourts.gov.in/hcservices/
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.