High Court · 2025

W.P. No.2854 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 29.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQW.P. No.2854 of 2025andW.M.P.Nos.3155 and 3156 of 2025M/s.MAS Merchants India Private Limited,Represented by its Director,Mr.S.Suresh, Railway Colony,No.7/4, 2nd Street,Aminjikarai, Chennai 600 029... Petitioner Vs.The Deputy State Tax Officer-2,Amaindakarai Assessment Circle,III Floor, PAPJM Building - Annexure,Greams Road, Chennai 600 006... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, to call for the impugned proceedings of the respondent in GSTIN:33AAKCM2847E1ZK/2018-19 dated 26.04.2024 and the connected order under Section 73 dated 26.04.2024 and the summary of the order in Form GST DRC-07 dated 26.04.2024 issued in Reference No:ZD330424206345S and quash the same as passed contrary to the provisions of the Central Goods and Service Tax Act, 2017 read with the provisions of the Tamil Nadu Goods and Services Tax Act, 2017.For Petitioner : Mr.C.SivasubramanianPage 1 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025 For Respondents: Mr.G.Nanmaran Special Government Pleader ORDERThe present writ petition is filed challenging the impugned order dated 26.04.2024, passed by the respondent in GSTIN:33AAKCM2847E1ZK/2018-19, on the premise that the same is made in violation of principles of natural justice.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in trading of premium quality fish products and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, it was noticed that there was excess claim of Input Tax Credit. 3. Pursuant thereto, a show cause notice in Form DRC-01 was issued to the petitioner on 27.12.2023. Thereafter, two reminder notices Page 2 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025were issued viz., 08.02.2024 and 21.03.2024 was also issued to the petitioner. However, the petitioner had not responded to any of the above notices / intimation, the impugned order was thus 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.Page 3 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 20255. 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 Special 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 26.04.2024 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 Page 4 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025deposit 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 Page 5 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025receipt 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. 29.01.2025 Speaking (or) Non Speaking OrderIndex:Yes/NoNeutral Citation: Yes/NosppTo:The Deputy State Tax Officer-2,Amaindakarai Assessment Circle,Page 6 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025III Floor, PAPJM Building - Annexure,Greams Road, Chennai 600 006.Page 7 of 8 https://www.mhc.tn.gov.in/judis W.P. No.2854 of 2025MOHAMMED SHAFFIQ, J.sppW.P. No.2854 of 2025andW.M.P.Nos.3155 and 3156 of 202529.01.2025Page 8 of 8