Tvl Eminent Textile Mills Private Limited vs. The State Tax Officer

Facts

The petitioner, Tvl Eminent Textile Mills Private Limited, filed a writ petition challenging an assessment order dated 30.08.2024 passed by the respondent, the State Tax Officer. The petitioner contended that a show cause notice was issued on 30.05.2024, but their employee handling GST matters was hospitalized, preventing them from filing a reply or appearing for a personal hearing. Consequently, the impugned assessment order was passed. The petitioner had previously filed a rectification application which was rejected, and subsequent writ petitions and appeals challenging the rejection order were dismissed up to the Supreme Court. The petitioner sought liberty to file an appeal against the original assessment order, as it had not been directly challenged in prior proceedings.

Held

The Court dismissed the writ petition. While acknowledging the petitioner's submission regarding the hospitalization of their employee, the Court was not inclined to accept it as a valid reason for not exploring alternative means to file a reply, especially for a Private Limited Company. The Court noted that the petitioner had previously challenged the order of rejection of their rectification application, which had attained finality up to the Supreme Court. However, the original assessment order had not been challenged prior to the present petition. The Court, considering the petitioner's willingness to file an appeal against the assessment order and their offer to pay an additional 5% of the disputed tax amount, dismissed the present petition. The Court granted liberty to the petitioner to file an appeal against the assessment order dated 30.08.2024 before the concerned Appellate Authority within four weeks from the date of receipt of the order, subject to paying 5% of the disputed tax amount in addition to the 20% already paid. The Appellate Authority was directed to consider the appeal on its merits without pressing for limitation.

Key Issues

1. Whether the impugned assessment order dated 30.08.2024, passed by the Respondent, is liable to be quashed for violation of the principles of natural justice, as argued by the Petitioner? 2. Whether the Petitioner should be granted liberty to file an appeal against the impugned assessment order dated 30.08.2024, as sought by the Petitioner? Petitioner's arguments: The petitioner argued that the assessment order was passed in violation of natural justice due to the hospitalization of their key employee, which prevented them from responding to the show cause notice or attending the personal hearing. They emphasized that prior litigation focused only on the rejection of the rectification application, not the original assessment order, and sought permission to file an appeal against the assessment order. They also offered to pay an additional 5% of the disputed tax amount. Respondent's arguments: The respondent argued that all notices were sent via RPAD and duly received, and despite this, the petitioner neither filed a reply nor appeared for the hearing. Therefore, the respondent contended that the principles of natural justice were not violated. The respondent requested appropriate orders regarding the filing of an appeal on terms.