Tvl.Thiruchenthur Murugan Agencies vs. The Proper Officer/State Tax Officer

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an appeal remedy before the appellate Deputy Commissioner of Commercial Taxes (GST) (Appeals), 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. The Court directed that all grounds raised in the writ petition could be raised in the appeal. The appellate authority was instructed to entertain the appeal if filed within two weeks from the date of receipt of the order, irrespective of the period of limitation, and to dispose of the appeal in accordance with law within two months thereafter. No order as to costs was made. The Court did not decide on the merits of the petitioner's claim regarding the violation of natural justice or the availment of blocked ITC.

Facts

The petitioner, Tvl.Thiruchenthur Murugan Agencies, filed a writ petition challenging an assessment order dated 14.08.2024 passed by the respondent, the Proper Officer/State Tax Officer, for the tax period 2019-20. The petitioner contended that the assessment order was passed without sufficient opportunity, as notices and orders were only uploaded to the department's web portal, violating principles of natural justice. The petitioner also claimed they did not avail blocked Input Tax Credit (ITC) on the purchase of motor passenger vehicles with less than 13 seats. The respondent argued that a show cause notice (DRC-01) was issued on 05.01.2024, and an appeal remedy under Section 107 of the TNGST Act, 2017, was available to the petitioner.

Key Issues

1. Whether the assessment order dated 14.08.2024, passed for the year 2019-20, is illegal and liable to be quashed for violating principles of natural justice by providing notices and orders only through the web portal, thereby denying sufficient opportunity to the petitioner? (Question of law and fact, turning on principles of natural justice and procedural fairness under GST law). Petitioner's arguments: The petitioner argued that the assessment order was passed without providing sufficient opportunity, as all communications were uploaded solely to the department's web portal, which they contended violates the principles of natural justice. They also asserted that they had not availed blocked ITC on motor passenger vehicles with less than 13 seats. Respondent's arguments: The respondent contended that the assessment order was passed after issuing a show cause notice on 05.01.2024, and therefore, the order should not be interfered with. The respondent further submitted that the petitioner had an alternative statutory remedy of appeal before the appellate Deputy Commissioner of Commercial Taxes (GST) (Appeals) under Section 107 of the TNGST Act, 2017, and had approached the High Court directly without availing this remedy.