High Court · 2025

W.P. No.742 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 29.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.742 of 2025andWMP.Nos.911 & 912 of 2025RevathiProprietrix : Tvl Revathi AgenciesNo.8, E L Raghavanar Street Tirupattur,Vellore, Tamil Nadu – 635 601.... PetitionerVs.Commercial Tax Officer,Jurisdiction: Thirupattur,Thirupattur: Vellore: Tamil Nadu,Thirupattur – Tamil Nadu.... Respondent PRAYER : Writ Petition filed under Article 226 of the Constitution of India seeking for a Writ of Certiorarified Mandamus, call for the records on the file of the respondent passed in order u/s 73 of GSTIN 33AGCPR4624D1ZR and Form GST DRC -07 both having Reference No.ZD3312232748295 and dated 30.12.2023 for the tax period July 2017- March 2018 relating to Financial Year 2017-18 and quash the same as illegal contrary to the provisions of the TNGST/CGST Acts, and in violation of principles of natural justice and fair play and direct the respondent to reverse the suo moto debiting of the Electronic Credit Ledger of the petitioner. For Petitioner ... Mr.T.Pramod Kumar Chopda,1/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 2025 Senior AdvocateFor Respondent ...Mr.C.Harsha Raj Additional Government Pleader ORDERThe present Writ Petition is filed challenging the impugned order passed by the respondent dated 30.12.2023 relating to the assessment year 2017-18. 2. The petitioner is engaged in the business of boarding and lodging. The petitioner is a registered dealer under Goods and Services Act, 2017. During the relevant period, the petitioner had filed its return and paid appropriate taxes. However, on examination of the information furnished in the return under various heads and also the information furnished in GSTR-01, GSTR2A, GSTR-3B and EWB other records, it was noticed that there is an excess claim of input tax credit. 3.Pursuant thereto, an intimation in ASMT-10 was issued on 31.07.2023, followed by notices in DRC-01A and DRC – 01 were issued on 11.09.2023 and 29.11.2023 respectively and reminder was issued on 29.12.2023. However, the petitioner had neither filed its reply nor paid the appropriate taxes. Hence, the impugned order came to be passed, confirming the proposal.2/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 20254. It is submitted by the learned counsel for the petitioner that neither the show cause notice nor the impugned order of assessment has been served on the petitioner 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 further 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.5. 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. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and more than 25% of the tax has already been recovered and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which, the learned Additional Government Pleader appearing for the respondent does not have any serious objection.3/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 20255. By consent of parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 30.12.2023 is set asideb) 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 of the above direction, shall be completed within a period of four weeks from the date of receipt of copy of this order.4/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 2025e) 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.5/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 20256. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. Speaking (or) Non Speaking OrderIndex : Yes/ No29.01.2025Neutral Citation: Yes/NosmsToCommercial Tax Officer,Jurisdiction: Thirupattur,Thirupattur: Vellore: Tamil Nadu,Thirupattur – Tamil Nadu.MOHAMMED SHAFFIQ, J.6/7 https://www.mhc.tn.gov.in/judis W.P. No.742 of 2025smsW.P. No.742 of 2025andWMP.Nos.911 & 912 of 202529.01.20257/7