Tvl. K.Kumar Raja Projects Private LTD. vs. The State Tax Officer, (GST)
Facts
The petitioner, Tvl.K.Kumar Raja Projects Private Limited, filed two writ petitions challenging assessment orders dated 03.02.2023 passed by the State Tax Officer, GST, Nanguneri. The assessment orders pertained to the financial years 2019-20 and 2018-19. In W.P.(MD).No.20614 of 2023 (for 2019-20), there was a turnover mismatch of Rs.9,84,087/- between the estimated turnover and the taxable turnover as per the return. In W.P.(MD).No.20615 of 2023 (for 2018-19), the mismatch was Rs.1,49,90,767/-. The petitioner contended that they did not receive the notice issued by the respondent on the web portal, which they inadvertently missed, leading to a violation of the principles of natural justice.
Held
The Court held that there was a violation of the principles of natural justice as the petitioner had inadvertently missed the notice issued on the web portal and thus did not get an opportunity to explain the significant turnover mismatches for the years 2019-20 and 2018-19. The Court found merit in the petitioner's submission that they were entitled to one more opportunity to present their case. Consequently, the assessment orders were set aside. The respondent was directed to grant the petitioner one more opportunity to explain their case, including a personal hearing, and thereafter pass a speaking order. This exercise was to be completed within eight weeks from the date of receipt of the order.
Key Issues
1. Whether the assessment orders passed by the respondent for the years 2019-20 and 2018-19 are liable to be quashed on the grounds of violation of the principles of natural justice, specifically concerning the non-receipt of notice and opportunity to explain the turnover mismatch? (Under Article 226 of the Constitution of India). Petitioner's Contention: The petitioner argued that they were not provided a reasonable opportunity to explain the discrepancies in turnover. They claimed that the notice issued by the respondent on the web portal was inadvertently missed, leading to a violation of natural justice. Therefore, the assessment orders should be quashed, and a fresh assessment should be ordered after providing a proper opportunity. Respondent's Contention: The respondent's counsel did not present any specific arguments against the petitioner's claim of violation of natural justice. The judgment notes that the respondent issued a notice, and the petitioner failed to avail the opportunity, attributing it to missing the notice on the web portal.
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W.P.(MD).Nos.20614 and 20615 of 2023 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 24.08.2023 CORAM THE HONOURABLE MRS.JUSTICE S.SRIMATHY W.P.(MD).Nos.20614 and 20615 of 2023 and W.M.P.(MD).Nos.17031 and 17036 of 2023 W.P.(MD).No.20614 of 2023: Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, to call for the records of the impugned assessment order on the file of respondent vide GSTIN: 33AABCK5644G1ZQ/2019-20, dated 03.02.2023 and quash the same as illegal and devoid of merits and direct the respondent to re-do the assessment for the year 2019-20 after providing reasonable opportunity to the petitioner. 6/6 https://www.mhc.tn.gov.in/judis
W.P.(MD).Nos.20614 and 20615 of 2023 W.P.(MD).No.20615 of 2023: Nan
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