Kirkas Tech Ventures Private Limited vs. The State Tax Officer (Fac)

Held

The Court noted the submission by the learned Government Advocate for the respondents that the petitioner has an available appeal remedy before the Deputy Commissioner (GST), Madurai, under Section 107 of the TNGST Act, 2017. Consequently, the Court disposed of the writ petition with liberty granted 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 one month from the date of receipt of the order, the appellate authority shall entertain it without insisting on the limitation period and dispose of the appeal in accordance with law within two months thereafter. No order as to costs was made.

Facts

The petitioner, Kirkas Tech Ventures Private Limited, filed a writ petition challenging an assessment order dated January 19, 2024, passed by the State Tax Officer (FAC) for the tax period 2018-2019. The petitioner also challenged a consequential attachment order (Form GST DRC-07) dated January 19, 2024, issued by the Commercial Tax Officer. The petitioner sought to quash these orders and direct the ICICI Bank to de-freeze its account. The petitioner contended that the assessment order was passed without sufficient opportunity, violating principles of natural justice. The respondents argued that a show cause notice was issued and that the petitioner had an alternative appeal remedy under Section 107 of the TNGST Act, 2017.

Key Issues

1. Whether the assessment order for the year 2018-2019, passed by the first respondent, is liable to be set aside for violation of the principles of natural justice due to insufficient opportunity provided to the petitioner? Petitioner's Contention: The petitioner argued that the assessment order was passed without providing sufficient opportunity, thus violating the principles of natural justice, and therefore, the impugned order should be set aside. Respondents' Contention: The respondents (State Tax Officer and Commercial Tax Officer) contended that the assessment order was passed after issuing a show cause notice on October 14, 2023, and that the petitioner has an alternative remedy of appeal under Section 107 of the TNGST Act, 2017, before the Deputy Commissioner (GST), Madurai. They argued that the petitioner should have availed this remedy instead of approaching the High Court directly.