High Court · 2025
Case Details
W.P.No.507 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED :09.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.507 of 2025andW.M.P.Nos.597 and 598 of 2025M/s.Golden Majestic Oil IndustriesRepresented by its PartnerMr.B.Sivakumar18/117C, Sowdambigai Nagar,Illiampudur Road, Kangayam,Tiruppur – 638 701. ... PetitionerVs.Assistant Commissioner (ST)Kangeyam Assessment CircleNo.260-261, Tirupur Main Road,Kangeyam, Tiruppur – 638 701. ... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari to call for the impugned order of the respondent passed in GSTIN/33AAJFG9220F1ZM/2017-18 dated 14.03.2023 (digitally signed on 15.03.2023) and quash the same.For Petitioner : M/s.A.DivyaFor Respondent : Mr.G.Nanmaran, Special Government Pleader.1/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025ORDERThe present writ petition is filed challenging the impugned order passed by the respondent dated 14.03.2023 (digitally signed on 15.03.2023) relating to the assessment year 2017-18.2. The petitioner is a manufacturer and dealer in edible vegetable oil and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2017-18, the petitioner filed its returns and paid the appropriate taxes. While so, the petitioner's place of business was visited by the State Tax Officer, Inspection-I, Erode Division on 05.05.2020. During the course of inspection, it was noticed that the petitioner had allegedly availed Input Tax Credit on the strength of the fake invoices without supply of goods by a fictitious supplier viz., Tvl.Sampoorani Amma Mills (P) Ltd. 2.1. Pursuant thereto, a notice was issued on 18.06.2021, followed by DRC-01A on 01.04.2022 and DRC-01 on 10.06.2022. Personal hearing was offered on 31.01.2023. In response, the petitioner had filed its reply on 02.12.2021 and attended the personal hearing. However, the petitioner's reply has been rejected on the premise that the petitioner had failed to produce any supporting documents regarding actual movement of goods. Hence, the impugned order came to be passed, confirming the proposal. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20253. The impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under View Additional Notices column in the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings.4. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. The learned counsel for the petitioner would then place reliance upon the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Special Government Pleader appearing for the respondent does not have any serious objection.3/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20255. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 14.03.2023 (digitally signed on 15.03.2023) is set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order.c) If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.d) The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance with the above direction shall be completed within a period of 4/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025four weeks from the date of receipt of copy of this order.e) Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order.f) If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. g) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 25% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.5/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20256. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 09.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Noshk6/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025To: Assistant Commissioner (ST)Kangeyam Assessment CircleNo.260-261, Tirupur Main Road,Kangeyam, Tiruppur – 638 701.7/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025MOHAMMED SHAFFIQ, J.shkW.P. No.507 of 2025andW.M.P.Nos.597 and 598 of 202509.01.2025(3/5)8/8
W.P.No.507 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED :09.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.507 of 2025andW.M.P.Nos.597 and 598 of 2025M/s.Golden Majestic Oil IndustriesRepresented by its PartnerMr.B.Sivakumar18/117C, Sowdambigai Nagar,Illiampudur Road, Kangayam,Tiruppur – 638 701. ... PetitionerVs.Assistant Commissioner (ST)Kangeyam Assessment CircleNo.260-261, Tirupur Main Road,Kangeyam, Tiruppur – 638 701. ... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari to call for the impugned order of the respondent passed in GSTIN/33AAJFG9220F1ZM/2017-18 dated 14.03.2023 (digitally signed on 15.03.2023) and quash the same.For Petitioner : M/s.A.DivyaFor Respondent : Mr.G.Nanmaran, Special Government Pleader.1/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025ORDERThe present writ petition is filed challenging the impugned order passed by the respondent dated 14.03.2023 (digitally signed on 15.03.2023) relating to the assessment year 2017-18.2. The petitioner is a manufacturer and dealer in edible vegetable oil and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2017-18, the petitioner filed its returns and paid the appropriate taxes. While so, the petitioner's place of business was visited by the State Tax Officer, Inspection-I, Erode Division on 05.05.2020. During the course of inspection, it was noticed that the petitioner had allegedly availed Input Tax Credit on the strength of the fake invoices without supply of goods by a fictitious supplier viz., Tvl.Sampoorani Amma Mills (P) Ltd. 2.1. Pursuant thereto, a notice was issued on 18.06.2021, followed by DRC-01A on 01.04.2022 and DRC-01 on 10.06.2022. Personal hearing was offered on 31.01.2023. In response, the petitioner had filed its reply on 02.12.2021 and attended the personal hearing. However, the petitioner's reply has been rejected on the premise that the petitioner had failed to produce any supporting documents regarding actual movement of goods. Hence, the impugned order came to be passed, confirming the proposal. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20253. The impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under View Additional Notices column in the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings.4. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. The learned counsel for the petitioner would then place reliance upon the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Special Government Pleader appearing for the respondent does not have any serious objection.3/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20255. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 14.03.2023 (digitally signed on 15.03.2023) is set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order.c) If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.d) The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance with the above direction shall be completed within a period of 4/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025four weeks from the date of receipt of copy of this order.e) Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order.f) If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. g) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 25% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.5/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 20256. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 09.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Noshk6/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025To: Assistant Commissioner (ST)Kangeyam Assessment CircleNo.260-261, Tirupur Main Road,Kangeyam, Tiruppur – 638 701.7/8 https://www.mhc.tn.gov.in/judis W.P.No.507 of 2025MOHAMMED SHAFFIQ, J.shkW.P. No.507 of 2025andW.M.P.Nos.597 and 598 of 202509.01.2025(3/5)8/8