M/S. Kr Constructions vs. The State Tax Officer

Held

The Court noted the submission by the learned Government Advocate that the petitioner has an appeal remedy available before the appellate Deputy Commissioner (GST), Trichy, under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petition, granting the petitioner liberty to approach the appellate authority. The petitioner was permitted to raise all grounds raised in the writ petition before the appellate authority. The Court directed that if an appeal is filed within two weeks from the date of receipt of the order, it shall be entertained by the appellate authority without reference to the period of limitation. The appellate authority was further directed to dispose of the appeal in accordance with law within four months thereafter. No order as to costs was made.

Facts

The petitioner, M/s. KR Constructions, filed a writ petition challenging an assessment order in Form GST DRC-07, dated January 29, 2024, for the tax period 2019-2020, issued by the respondent, The State Tax Officer. The petitioner contended that the order was passed in violation of the principles of natural justice, as they were not provided with sufficient opportunity. The respondent argued that a show cause notice in DRC-01 was issued on November 3, 2023, and that the petitioner had an alternative appeal remedy under Section 107 of the TNGST Act, 2017, before the appellate Deputy Commissioner (GST). The petitioner had approached the High Court directly without availing this remedy.

Key Issues

1. Whether the assessment order dated January 29, 2024, passed by the respondent for the tax period 2019-2020, is liable to be quashed for violation of the principles of natural justice, specifically for not providing sufficient opportunity to the petitioner? Petitioner's contention: The petitioner argued that the impugned assessment order was passed without providing sufficient opportunity, thus violating the principles of natural justice, and therefore, the order should be set aside. Respondent's contention: The respondent contended that a show cause notice in Form DRC-01 was issued on November 3, 2023, and that the petitioner possesses an effective alternative remedy of appeal under Section 107 of the TNGST Act, 2017, before the appellate Deputy Commissioner (GST). The respondent argued that the petitioner should have availed this statutory remedy instead of directly approaching the High Court.