Tvl. Paulraj vs. The State Tax Officer / Commercial Tax Officer

Facts

The petitioner, Tvl. Paulraj, represented by its Proprietor Paulraj, filed a writ petition challenging an assessment order dated 22.11.2024, passed by the respondent, The State Tax Officer/Commercial Tax Officer, Ettayapuram Assessment Circle, Thoothukudi District. The impugned order pertains to the tax period 2017-18 and was passed under Section 73 of the TNGST Act, 2017, citing defects such as mismatch between GSTR 3B and GSTR 1. The petitioner contended that the assessment proceedings were conducted solely by uploading the show cause notice and the order on the portal, thereby denying them a proper opportunity to be heard. The respondent argued that portal upload constitutes valid service as per the Act and rules, and the petitioner belatedly filed the writ petition without availing the opportunity.

Held

The Court, after considering the rival submissions and the facts, decided to grant one opportunity to the petitioner. The Court acknowledged the petitioner's submission regarding a road accident, which may have hindered their participation. The Court reasoned that while the respondent's argument regarding portal service has merit, a procedural fairness approach is warranted. Consequently, the impugned order dated 22.11.2024 was set aside. The matter was remanded back to the respondent for fresh disposal. The petitioner was directed to deposit 25% of the disputed tax amount within four weeks as a condition for this opportunity. Upon deposit, the petitioner would be permitted to file a reply, submit supporting documents, and raise all factual and legal grounds before the respondent. The respondent is to pass fresh orders in accordance with the law. The deposited amount will be subject to the final outcome and can be adjusted against other liabilities if the petitioner's plea is accepted for any of the years 2017-18, 2018-19, 2019-20, and 2020-21.

Key Issues

1. Whether the uploading of the show cause notice and the assessment order on the GST portal constitutes proper service of notice to the petitioner, thereby denying them an opportunity to be heard? (Question of law, concerning principles of natural justice and procedural fairness under the TNGST Act, 2017). Petitioner's contentions: The petitioner argued that the entire assessment exercise was conducted solely through portal uploads, which prevented them from effectively utilizing the opportunity to respond and present their case. They sought to quash the order and have the assessment redone. Respondent's contentions: The respondent contended that as per the provisions of the TNGST Act and its rules, uploading the show cause notice and the order on the portal is considered valid service. Therefore, the petitioner's failure to participate in the proceedings meant they had not availed the opportunity provided, and the writ petition was filed belatedly.