High Court · 2025

W.P. No.1476 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 22.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1476 of 2025andW.M.P. Nos.1723 and 1726 of 2025M/s.Jarv Tools,Represented by its Proprietor,Mr.Raj Vijaykumarpaul,Having business at, 98/10, Tiny Plot,Industrial Estate, Thirumudivakkam,Kancheepuram, Tamil Nadu-631 604. ... Petitioner Vs.1.Assistant Commissioner (ST), Room No.253, 255, Second Floor, Integrated Commercial Taxes and Registration Building, South Tower, Nandanam, Chennai-600 035.2.Deputy Commissioner (ST) (GST Appeal), Room No.253, 255, Second Floor, Integrated Commercial Taxes and Registration Building, South Tower, Nandanam, Chennai-600 035. ... RespondentsPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorarified Mandamus calling for the records on the file of the 1st Respondent of order in Reference No:ZD330424203844N passed 1/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025under Section 73 of the TNGST Act, 2017 dated 25.04.2024 passed by the 1st Respondent for the FY: 2018-19 and quash the same as illegal and not in accordance with law and consequently direct the 1st Respondent to conduct fresh assessment proceedings after providing a reasonable opportunity of hearing to the petitioner in accordance with law.For Petitioner : Mr.G.Logesh for Mr.R.SivaramanFor Respondents : Mrs.K.Vasanthamala Government AdvocateORDERThe present writ petition is filed challenging the impugned order dated 25.04.2024 relating to the assessment year 2018-19.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of manufacture engineering cutting tools and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, it was found that there was excess claim of Input Tax credit. 3. It is submitted by the learned counsel for the petitioner that a notice in DRC-01A was issued on 30.01.2024. Further, personal hearing was afforded on 2/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 202529.02.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. Thereafter, the impugned order came to be passed confirming the proposal. 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 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 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.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 3/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025before the adjudicating authority to put forth their objections to the proposal. It is further submitted that subsequent to the passing of the impugned order, an appeal was also preferred and payment of 10% of disputed tax was made as pre-deposit and his only request is that the same may be adjusted towards 25% of the disputed tax,to which the learned Government Advocate appearing for the respondent does not have any serious objection. 6. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 25.04.2024 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.4/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025d) 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 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 5/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025period, 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. 22.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Nomka6/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025To:1.Assistant Commissioner (ST), Room No.253, 255, Second Floor, Integrated Commercial Taxes and Registration Building, South Tower, Nandanam, Chennai-600 035.2.Deputy Commissioner (ST) (GST Appeal), Room No.253, 255, Second Floor, Integrated Commercial Taxes and Registration Building, South Tower, Nandanam, Chennai-600 035.7/8 https://www.mhc.tn.gov.in/judis W.P. No.1476 of 2025MOHAMMED SHAFFIQ, J.mkaW.P. No.1476 of 202522.01.20258/8