Tvl Sithara Steel Corporation vs. The State Tax Officer

Facts

The petitioner, Tvl Sithara Steel Corporation, filed a writ petition challenging an assessment order for the year 2017-2018, passed by the State Tax Officer, Madurai. The petitioner contended that the assessment order was passed without providing sufficient opportunity, violating principles of natural justice. The respondent, represented by the Additional Government Pleader, submitted that a show cause notice (DRC 01) was issued on 25.09.2023, and the petitioner has an appeal remedy under Section 107(1) of the TNGST Act, 2017, before the Commissioner (GST-Appeal). The petitioner approached the High Court without availing this statutory remedy.

Held

The Court noted the submission by the learned Additional Government Pleader that the petitioner has an available appeal remedy before the Commissioner (GST-Appeal) under Section 107(1) of the TNGST Act, 2017. Consequently, the Court disposed of the writ petition with a 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 further 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. The Court did not decide on the merits of the petitioner's claim regarding the violation of natural justice.

Key Issues

1. Whether the assessment order passed by the respondent for the year 2017-2018 is liable to be quashed for violation of the principles of natural justice, specifically for not providing sufficient opportunity to the petitioner? (Question of law and fact, turning on principles of natural justice and procedural fairness under GST law). Contentions: Petitioner: Argued that the assessment order was passed without sufficient opportunity, thus violating principles of natural justice and being devoid of merits. Respondent: Contended that a show cause notice was issued on 25.09.2023, and the petitioner possesses an alternative statutory remedy of appeal under Section 107(1) of the TNGST Act, 2017, before the Commissioner (GST-Appeal). Therefore, the writ petition should not be entertained.