Tvl. Annasri Containers vs. State Tax Officer (St)

Held

The Court held that the impugned order dated 18.07.2023, passed by the State Tax Officer, Virudhunagar-II Assessment Circle, for the tax period 2020-21, was to be set aside. This decision was based on the fact that the order was passed without the petitioner having filed a reply to the show cause notices (in Form GST-01 in Form DRC-06) and without the petitioner appearing for the personal hearing. The Court accepted the petitioner's submission that they were unable to attend the hearing due to sickness. As a condition for rehearing the case, the petitioner was directed to deposit 10% of the disputed tax within 30 days. The impugned order was to be treated as a corrigendum to the show cause notices. The respondent was directed to pass a fresh order on merits within 30 days thereafter, after hearing the petitioner. No costs were awarded.

Facts

The petitioner, Tvl. Annasri Containers, represented by its Proprietrix S. Annalakshmi, filed a writ petition seeking to quash an order dated 18.07.2023 passed by the respondent, the State Tax Officer (ST), Virudhunagar-II Assessment Circle. The order pertained to the tax period 2020-21. The petitioner contended that the impugned order was passed without providing an opportunity to file objections and produce documents. The petitioner also stated that they were unable to attend a personal hearing due to sickness. The respondent consented to the disposal of the writ petition at the admission stage.

Key Issues

1. Whether the impugned order dated 18.07.2023, passed by the State Tax Officer, Virudhunagar-II Assessment Circle, for the tax period 2020-21, is liable to be quashed for violation of principles of natural justice, specifically for not affording the petitioner an opportunity to file objections and produce documents? Petitioner's contention: The petitioner argued that the order was passed without a proper opportunity to respond to show cause notices and produce necessary documents. They also claimed inability to attend the personal hearing due to illness. Respondent's contention: The respondent, represented by the Additional Government Pleader, consented to the disposal of the writ petition at the admission stage, acknowledging that the impugned order was passed without a reply from the petitioner to the show cause notices and that the petitioner did not appear for the personal hearing.