High Court · 2025

W.P. No.892 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 20.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.892 of 2025andW.M.P.Nos.1065 & 1066 of 2025Aish Designer Tiles,Rep. By its proprietor,No.258, New MO Sampath Nagar,Ikkadu Thiruvallur,Tiruvallur-602 021. ... PetitionerVs.1.The Deputy State Tax officer-1, Office of Deputy Commercial Tax Officer, Tiruvallur Assessment Circle, Tiruvallur.2.The Assistant Commissioner (ST)(FAC), Tiruvallur Assessment Circle, Chennai- 600 123. ... RespondentsPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, to call for the records of the respondent herein in the impugned proceedings vide 1st respondent vide Form DRC-07 bearing Ref.No.ZD3308241012303 dated 13.08.2024 for the tax period 2019-20 along with the consequential recovery notice issued by the 2nd respondent bearing GSTIN:33ABBFA0064G1Z4/2024-25 dated 27.11.2024 and quash the same.For Petitioner : Mr.S.RajendranFor respondents : Mr.V.Prashanth Kiran Government Advocate1/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025ORDERThe present writ petition is filed challenging the impugned order passed by the respondent dated 13.08.2024 relating to the assessment year 2019-20.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of Bricks, Blocks, Tiles and other Ceramic Goods of Siliceous fossil Meals and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2019-20, the petitioner filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, the following discrepancies were noticed:1.Declaration of output tax2.Excess claim of ITC 3. It is submitted by the learned counsel for the petitioner that a notice in Form DRC-01 dated 22.05.2024 was issued to the petitioner through common portal. Further, personal hearing was also offered to the petitioner. However, the petitioner had neither filed its reply nor availed the opportunity of a personal hearing. It is submitted by the learned counsel for the petitioner that neither the show cause notices nor the impugned order of assessment has been served on the 2/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025petitioner by tender or sending it by RPAD, instead it had been uploaded in the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. 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. It is also submitted that pursuant to the impugned order passed by the first respondent, the petitioner's Bank account has been attached.4. The learned counsel for the petitioner would 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.5. 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 Government Advocate appearing for the respondents does not have any serious objection.3/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 20256. By consent of both parties, the writ petition stands disposed of on the following terms:a) The orders impugned herein are 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 four weeks from the date of 4/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025receipt 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.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 5/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025 20.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Novsn6/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025To: 1.The Deputy State Tax officer-1, Office of Deputy Commercial Tax Officer, Tiruvallur Assessment Circle, Tiruvallur.2.The Assistant Commissioner (ST)(FAC), Tiruvallur Assessment Circle, Chennai- 600 123.7/8 https://www.mhc.tn.gov.in/judis W.P. No.892 of 2025MOHAMMED SHAFFIQ, J.vsnW.P. No.892 of 2025andW.M.P.Nos.1065 & 1066 of 202520.01.20258/8