M/S. Lekshmi Marketing vs. The State Tax Officer

Held

The Court did not delve into the correctness of the impugned assessment order. Instead, it focused on the decision-making process and the availability of alternative remedies. The Court noted that the petitioner had an alternative remedy by filing a statutory appeal before the Appellate Deputy Commissioner (GST). Therefore, the Court disposed of the writ petition by granting the petitioner liberty to file an appeal before the Appellate Deputy Commissioner (GST) within 30 days from the receipt of the order. The Appellate Deputy Commissioner was directed to entertain the appeal, provided the petitioner complied with the requirements of Section 107 of the TNGST Act, 2017, and dispose of it on merits within three months thereafter. The Court also directed the Appellate Deputy Commissioner to consider the assessment order dated 01.04.2024 for the assessment year 2018-19 while passing orders on merits. No issue was expressly left undecided, as the Court directed the matter to the appellate authority.

Facts

The petitioner, M/s. Lekshmi Marketing, filed a writ petition challenging an assessment order dated 23.12.2023 passed by the State Tax Officer for the assessment year 2017-18. The petitioner contended that a mistake occurred while filing Form GST DRC 3B, specifically in entering the Income Tax Credit under Serial No. 4.A.(3) instead of 4.A.(5). This error led to the denial of credit amounting to Rs. 15,386.37 each for Central Tax and State Tax. The petitioner argued that the mistake was due to unfamiliarity with the new GST forms by the petitioner and staff. The Court noted that the petitioner had already filed a reply to the show cause notice preceding the impugned order.

Key Issues

1. Whether the impugned assessment order dated 23.12.2023, issued by the State Tax Officer for the assessment year 2017-18, is arbitrary and illegal, warranting quashing and a fresh assessment order after a personal hearing? Petitioner's arguments: The petitioner argued that the impugned order is illegal and arbitrary due to a bona fide mistake made in filing Form GST DRC 3B. This mistake, attributed to the petitioner and staff getting accustomed to the new GST filing procedures, resulted in the incorrect availment of Input Tax Credit. The petitioner sought to quash the order and obtain a fresh assessment after a personal hearing. Revenue's arguments: The judgment records no specific arguments from the respondents regarding the merits of the petitioner's claim or the legality of the assessment order. The respondents were represented by the Additional Government Pleader.