M/S. Selvamuthu Enterprises vs. The Assistant Commissioner (St)

Held

The Court noted the respondent's submission that the petitioner has an appeal remedy before the Deputy Commissioner (Appeal), Madurai, under Section 107 of the TNGST Act, 2017. Consequently, the writ petition was disposed of by granting the petitioner liberty to approach the appellate authority and raise all grounds raised in the writ petition. The Court directed that if an appeal is filed within two weeks of receiving the order copy, the appellate authority shall entertain it without reference to the period of limitation. The appellate authority was further directed to dispose of the appeal within three months thereafter. Pending this, the respondent was directed to maintain the status quo. The Court did not decide on the merits of the petitioner's challenge to the assessment order, deferring it to the appellate authority.

Facts

The petitioner, M/s.Selvamuthu Enterprises, filed a writ petition challenging an assessment order dated 18.03.2024, passed by the Assistant Commissioner (ST), Theni, for the Assessment Year 2018-2019. The petitioner contended that due to a part-time accountant's failure to inform them about the proceedings and their lack of knowledge about GST and portal access, they could not participate in the adjudication, leading to an ex parte order. They also pointed out that a similar order for the same assessment year, passed by the State Tax Officer, was set aside by this Court in a previous writ petition. The respondent argued that a show cause notice (DRC-01) was issued on 27.12.2023, and the petitioner had an appeal remedy under Section 107 of the TNGST Act, 2017, but approached the High Court directly.

Key Issues

1. Whether the assessment order dated 18.03.2024, passed by the respondent for the Assessment Year 2018-2019, is liable to be quashed on the grounds of lack of sufficient opportunity to the petitioner and being passed ex parte, thereby violating principles of natural justice, particularly in light of a prior order for the same period being set aside by this Court? (Mixed question of law and fact, concerning principles of natural justice and Section 74 of the CGST Act/TNGST Act, 2017). Contentions: Petitioner: Argued that due to reliance on a part-time accountant and limited portal access, they were unaware of the assessment proceedings and thus could not participate, leading to an ex parte order. Relied on the fact that a similar order for the same period was set aside by this Court in W.P.(MD)No.6705 of 2025. Respondent: Contended that a show cause notice was issued on 27.12.2023, and the petitioner has an alternative remedy of appeal under Section 107 of the TNGST Act, 2017, and should have availed it instead of directly approaching the High Court.