M/S. Ajantha Construction vs. The State Tax Officer, Inspection-V

Held

The Court allowed the writ petitions by setting aside the impugned orders dated 29.01.2024. The Court directed the respondent to pass a fresh order on merits and in accordance with law, subject to the petitioner depositing 10% of the disputed tax to the credit of the Government from its Electronic Cash Register. The impugned orders were to be treated as an addendum to the show cause notices previously issued. The petitioner was granted 30 days from the receipt of the order to file a reply. The respondent was directed to pass a fresh order within two months thereafter, ensuring the petitioner was heard before passing the fresh orders. The principle established is that tax authorities must grant a personal hearing before passing final adjudication orders, and non-compliance can lead to the quashing of such orders and a remand for fresh adjudication with specific conditions.

Facts

The petitioner, M/s. Ajantha Construction, represented by its Managing Partner, R.P.Subramanian, filed three writ petitions challenging orders dated 29.01.2024 in Form GST DRC-07 issued by the respondent, The State Tax Officer, Inspection -V, Intelligence, Trichy. These orders pertained to the Financial Years 2019-20, 2020-21, and 2022-23. The petitioner sought to quash these orders, deeming them arbitrary and illegal, and requested the respondent to redo the adjudication after granting a personal hearing. The respondent is the tax authority, and the petitioner is the assessee. The amount in dispute is not explicitly stated in the provided text.

Key Issues

1. Whether the impugned orders dated 29.01.2024 in Form GST DRC-07, issued by the respondent, are arbitrary and illegal, warranting quashing. 2. Whether the petitioner is entitled to a fresh adjudication by the respondent after being granted an opportunity of a personal hearing. The petitioner argued that the impugned orders were arbitrary and illegal and sought their quashing, along with a direction for a fresh adjudication after a personal hearing. The respondent did not record any specific arguments in the provided text.