High Court · 2025
Case Details
W.P. No.1979 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 24.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1979 of 2025andW.M.P. Nos.2313 and 2315 of 2025Fazari Multicuisine Restaurant,Represented by its Managing Partner Mr.P.Shamnad,S/o. Abdul Sathar, Aged 33 years,15, CLC Works Road, Chrompet,Chennai-600 044. ... Petitioner Vs.The Assistant Commissioner (ST),Pallavaram Assessment Circle,Integrated Building for Commercial Taxes and Registration Department,Room No.313, 3rd Floor, Nandanam,Chennai-600 035. ... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari calling for the records of Respondent's order dated 22.08.2024 bearing Reference No.ZD330824202781K in Form GST DRC-07 along with a summary order dated 22.08.2024 bearing Reference No.ZD330824202781K along with a detailed order dated 22.08.2024 on the file of the Respondent relating to the Financial year 2019-20 and quash the same.For Petitioner : Mr.I.Dinesh for Ms.N.Janani1/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025For Respondent : Mr.TNC.Kaushik Additional Government PleaderORDERThe present writ petition is filed challenging the impugned order dated 22.08.2024 relating to the assessment year 2019-20.2. It is submitted by the learned counsel for the petitioner that the petitioner 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. On examination of the information furnished by the tax payer in GSTR-3B and GSTR-1, the following discrepancies were noticed:i) Mismatch between GSTR 3B and GSTR 1;ii) Mismatch between GSTR 3B and GSTR 2A;iii) Mismatch between GSTR 7 vs. GSTR 3B and GSTR 1iv) Mismatch between GSTR 8 and GSTR 1;v) Mismatch in GSTR 9 verification;vi) Late filing of returns andvii) Non-generation of E-way bills. 2.1. Though the notice contained several proposals, however despite the fact that the petitioner has not filed reply, except the mismatch between GSTR 8 2/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025and GSTR 1 all other defects were dropped. 3. It is submitted by the learned counsel for the petitioner that a notice in ASMT-10 was issued on 28.02.2022 and another notice in DRC-01 was issued on 29.05.2024. Further, reminder notices were issued on 23.07.2024, 30.07.2024 and 10.08.2024. However, the petitioner had neither filed its reply nor paid the disputed tax. It is further 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 under “view additional notices” tab on 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 3/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025the 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. It was submitted that pursuant to the impugned order of assessment, recovery proceedings were initiated and bank accounts have been attached and requests that the same may be lifted, to which the learned Additional Government Pleader 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 22.08.2024 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 4/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025be 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 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 5/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 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.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 24.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Nomka6/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025To:The Assistant Commissioner (ST),Pallavaram Assessment Circle,Integrated Building for Commercial Taxes and Registration Department,Room No.313, 3rd Floor, Nandanam,Chennai-600 035. 7/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025MOHAMMED SHAFFIQ, J.mkaW.P. No.1979 of 202524.01.20258/8
W.P. No.1979 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 24.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1979 of 2025andW.M.P. Nos.2313 and 2315 of 2025Fazari Multicuisine Restaurant,Represented by its Managing Partner Mr.P.Shamnad,S/o. Abdul Sathar, Aged 33 years,15, CLC Works Road, Chrompet,Chennai-600 044. ... Petitioner Vs.The Assistant Commissioner (ST),Pallavaram Assessment Circle,Integrated Building for Commercial Taxes and Registration Department,Room No.313, 3rd Floor, Nandanam,Chennai-600 035. ... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari calling for the records of Respondent's order dated 22.08.2024 bearing Reference No.ZD330824202781K in Form GST DRC-07 along with a summary order dated 22.08.2024 bearing Reference No.ZD330824202781K along with a detailed order dated 22.08.2024 on the file of the Respondent relating to the Financial year 2019-20 and quash the same.For Petitioner : Mr.I.Dinesh for Ms.N.Janani1/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025For Respondent : Mr.TNC.Kaushik Additional Government PleaderORDERThe present writ petition is filed challenging the impugned order dated 22.08.2024 relating to the assessment year 2019-20.2. It is submitted by the learned counsel for the petitioner that the petitioner 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. On examination of the information furnished by the tax payer in GSTR-3B and GSTR-1, the following discrepancies were noticed:i) Mismatch between GSTR 3B and GSTR 1;ii) Mismatch between GSTR 3B and GSTR 2A;iii) Mismatch between GSTR 7 vs. GSTR 3B and GSTR 1iv) Mismatch between GSTR 8 and GSTR 1;v) Mismatch in GSTR 9 verification;vi) Late filing of returns andvii) Non-generation of E-way bills. 2.1. Though the notice contained several proposals, however despite the fact that the petitioner has not filed reply, except the mismatch between GSTR 8 2/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025and GSTR 1 all other defects were dropped. 3. It is submitted by the learned counsel for the petitioner that a notice in ASMT-10 was issued on 28.02.2022 and another notice in DRC-01 was issued on 29.05.2024. Further, reminder notices were issued on 23.07.2024, 30.07.2024 and 10.08.2024. However, the petitioner had neither filed its reply nor paid the disputed tax. It is further 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 under “view additional notices” tab on 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 3/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025the 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. It was submitted that pursuant to the impugned order of assessment, recovery proceedings were initiated and bank accounts have been attached and requests that the same may be lifted, to which the learned Additional Government Pleader 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 22.08.2024 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 4/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025be 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 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 5/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 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.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 24.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Nomka6/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025To:The Assistant Commissioner (ST),Pallavaram Assessment Circle,Integrated Building for Commercial Taxes and Registration Department,Room No.313, 3rd Floor, Nandanam,Chennai-600 035. 7/8 https://www.mhc.tn.gov.in/judis W.P. No.1979 of 2025MOHAMMED SHAFFIQ, J.mkaW.P. No.1979 of 202524.01.20258/8