High Court · 2025

W.P.No.1008 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 20.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1008 of 2025andW.M.P.Nos.1256 & 1259 of 2025Tvl Sri Mahalakshmi Steels,Represented by its Proprietor,Mr. Rasalingam Palaniyandi,Shed No. C 1, SIDCO Industrial Estate,Paramathy Road, Namakkal,Tamil Nadu 600 107.... PetitionerVs.The State Tax Officer,Namakkal (Rural) Assessment Circle,Namakkal, Tamil Nadu.... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, calling for the records on the files of the Respondent herein in FORM GST DRC-07 with Reference No.ZD330724238861A dated 19.07.2024 along with detailed order in GSTIN:33ANHPR8893C1ZM/2019-20 dated 19.07.2024 for the assessment year 2019-20 and quash the same.For Petitioner : Mr.K.A.ParthasarathyFor respondent : Mr.V.Prashanth Kiran Government Advocate1/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025ORDERThe present writ petition is filed challenging the impugned order 19.07.2024 passed by the respondent relating to the assessment year 2019-2020.2. Mr.V.Prashanth Kiran, learned Government Advocate takes notice on behalf of the respondent. By consent of the parties, the main Writ Petition is taken up for disposal at the admission stage.3. It is submitted by the learned counsel for the petitioner that the petitioner is inter alia involved in the activity of manufacturing and trading of Steel Fabrications and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2019-2020, the petitioner had filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, it was found that there was mismatch between GSTR-3B and GSTR-2A. 4. It is submitted by the learned counsel for the petitioner that an intimation notice in Form DRC-01A dated 21.02.2023, followed by a show cause notice in Form DRC-01 dated 14.04.2023 were issued to the petitioner 2/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025through GST common portal. Further, the personal hearing opportunities were also granted to the petitioner. However, the petitioner had neither filed its reply nor availed the opportunities of 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 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.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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.6. 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 3/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025before the adjudicating authority to put forth their objections to the proposal, to which the learned Government Advocate appearing for the respondent does not have any serious objection.7. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 19.07.2024 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.4/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 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 5/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025passed 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.8. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 20.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NojdToThe State Tax Officer,Namakkal (Rural) Assessment Circle,Namakkal, Tamil Nadu.6/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025MOHAMMED SHAFFIQ, J.jdW.P. No.1008 of 202520.01.20257/7

W.P.No.1008 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 20.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1008 of 2025andW.M.P.Nos.1256 & 1259 of 2025Tvl Sri Mahalakshmi Steels,Represented by its Proprietor,Mr. Rasalingam Palaniyandi,Shed No. C 1, SIDCO Industrial Estate,Paramathy Road, Namakkal,Tamil Nadu 600 107.... PetitionerVs.The State Tax Officer,Namakkal (Rural) Assessment Circle,Namakkal, Tamil Nadu.... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, calling for the records on the files of the Respondent herein in FORM GST DRC-07 with Reference No.ZD330724238861A dated 19.07.2024 along with detailed order in GSTIN:33ANHPR8893C1ZM/2019-20 dated 19.07.2024 for the assessment year 2019-20 and quash the same.For Petitioner : Mr.K.A.ParthasarathyFor respondent : Mr.V.Prashanth Kiran Government Advocate1/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025ORDERThe present writ petition is filed challenging the impugned order 19.07.2024 passed by the respondent relating to the assessment year 2019-2020.2. Mr.V.Prashanth Kiran, learned Government Advocate takes notice on behalf of the respondent. By consent of the parties, the main Writ Petition is taken up for disposal at the admission stage.3. It is submitted by the learned counsel for the petitioner that the petitioner is inter alia involved in the activity of manufacturing and trading of Steel Fabrications and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2019-2020, the petitioner had filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, it was found that there was mismatch between GSTR-3B and GSTR-2A. 4. It is submitted by the learned counsel for the petitioner that an intimation notice in Form DRC-01A dated 21.02.2023, followed by a show cause notice in Form DRC-01 dated 14.04.2023 were issued to the petitioner 2/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025through GST common portal. Further, the personal hearing opportunities were also granted to the petitioner. However, the petitioner had neither filed its reply nor availed the opportunities of 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 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.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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.6. 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 3/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025before the adjudicating authority to put forth their objections to the proposal, to which the learned Government Advocate appearing for the respondent does not have any serious objection.7. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 19.07.2024 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.4/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 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 5/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025passed 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.8. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 20.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NojdToThe State Tax Officer,Namakkal (Rural) Assessment Circle,Namakkal, Tamil Nadu.6/7 https://www.mhc.tn.gov.in/judis W.P.No.1008 of 2025MOHAMMED SHAFFIQ, J.jdW.P. No.1008 of 202520.01.20257/7