Tvl. Agr Sign Boards vs. State Tax Officer

Held

The Court noted the submission by the learned Government Advocate that the petitioner possesses an alternative remedy of appeal before the appellate Deputy Commissioner (ST) (GST), Trichy, under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petition, granting liberty to the petitioner 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 insisting on the limitation period and be disposed of in accordance with law within one month thereafter. No costs were awarded. The Court did not decide the merits of the petitioner's claim regarding the violation of natural justice.

Facts

The petitioner, Tvl. AGR SIGN BOARDS, represented by its Proprietor, filed a writ petition challenging an assessment order dated 14.08.2024, passed by the respondent, the State Tax Officer, for the assessment year 2019-2020. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating the principles of natural justice. The respondent argued that a show cause notice was issued on 27.05.2024 and that the petitioner has an alternative appeal remedy under Section 107 of the TNGST Act, 2017, before the appellate Deputy Commissioner (ST) (GST), Trichy. The respondent submitted that the petitioner approached the High Court directly without exhausting the statutory appeal mechanism.

Key Issues

1. Whether the assessment order dated 14.08.2024, passed by the respondent for the assessment year 2019-2020, is liable to be quashed on the ground of violation of principles of natural justice due to insufficient opportunity provided to the petitioner? (Question of law and fact, turning on principles of natural justice and procedural fairness). Petitioner's contention: The assessment order was passed without affording adequate opportunity to the petitioner, thus violating the principles of natural justice and rendering the order liable for setting aside. Respondent's contention: A show cause notice was duly issued to the petitioner on 27.05.2024. The petitioner has an efficacious alternative remedy of appeal under Section 107 of the TNGST Act, 2017, and should have availed it instead of directly approaching the High Court. The respondent relied on the existence of the statutory appeal provision.