High Court · 2025

W.P.No.3314 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 30.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.3314 of 2025andW.M.P.Nos.3681, 3683, 3684 and 3686 of 2025Ulganathan Suresh... PetitionerVs.1.Deputy Commercial Tax Officer (ST) Sholinganallur Assessment Circle, No.241, Second Floor, Integrated Building of Commercial Taxes and Registration Department, Farnpet, Chennai 600 035.2.The Branch Manager, Axis Bank, No.284/6, Lakshman Nagar, Khandan Chavadi, Perungudi, Chennai 600 096.3.Assistant Commissioner (ST), (FAC), Sholinganallur Assessment Circle, 2nd Floor, Integrated Building for Registration and Commercial Taxes Departments, Nandanam, Chennai 600 035. ... RespondentsPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records in the file of the first respondent and quash the impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017/ Central Goods and Service Tax Act, 1/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 20252017 including the summary of the order in Form GST DRC-07 both dated 19.08.2024 and having Reference Number ZD3308241526376 and its annexure dated 19.08.2024 in GSTIN:33AXJPS7963E1Z2/2019-20 passed by the first respondent for the FY 2019-20.For Petitioner : M/s.N.V.LakhsmiFor Respondents : Mr.V.Prashanth, Government Advocate for R1 and R3.ORDERThe present writ petition is filed challenging the impugned order passed by the first respondent dated 19.08.2024 relating to the assessment year 2019-20.2. The petitioner is engaged in the business of outdoor catering and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2019-20, 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 mismatch between GSTR-8 and GSTR-1. 2.1. Pursuant thereto, a notice in ASMT-10 was issued on 07.03.2022, followed by DRC-01 on 30.05.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. Hence, the impugned order came to be passed, confirming the proposal. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 20253. The impugned order is challenged on the premise 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.4. 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. The learned counsel for the petitioner would then 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. 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 is submitted that there is bank attachment and the same may be lifted to which the learned Government Advocate appearing for the first and third respondents does not have any 3/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025serious objection.5. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 19.08.2024 is set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondents 1 and 3, 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 with the above direction shall be completed within a period of four weeks from the date of receipt of copy of this order.4/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 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.6. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 5/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025 30.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NoshkTo: 1.Deputy Commercial Tax Officer (ST) Sholinganallur Assessment Circle, No.241, Second Floor, Integrated Building of Commercial Taxes and Registration Department,6/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025 Farnpet, Chennai 600 035.2.The Branch Manager, Axis Bank, No.284/6, Lakshman Nagar, Khandan Chavadi, Perungudi, Chennai 600 096.3.Assistant Commissioner (ST), (FAC), Sholinganallur Assessment Circle, 2nd Floor, Integrated Building for Registration and Commercial Taxes Departments, Nandanam, Chennai 600 035.MOHAMMED SHAFFIQ, J.shk7/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025W.P. No.3314 of 2025andW.M.P.Nos.3681, 3683, 3684 and 3686 of 202530.01.2025(1/2)8/8

W.P.No.3314 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 30.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.3314 of 2025andW.M.P.Nos.3681, 3683, 3684 and 3686 of 2025Ulganathan Suresh... PetitionerVs.1.Deputy Commercial Tax Officer (ST) Sholinganallur Assessment Circle, No.241, Second Floor, Integrated Building of Commercial Taxes and Registration Department, Farnpet, Chennai 600 035.2.The Branch Manager, Axis Bank, No.284/6, Lakshman Nagar, Khandan Chavadi, Perungudi, Chennai 600 096.3.Assistant Commissioner (ST), (FAC), Sholinganallur Assessment Circle, 2nd Floor, Integrated Building for Registration and Commercial Taxes Departments, Nandanam, Chennai 600 035. ... RespondentsPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records in the file of the first respondent and quash the impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017/ Central Goods and Service Tax Act, 1/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 20252017 including the summary of the order in Form GST DRC-07 both dated 19.08.2024 and having Reference Number ZD3308241526376 and its annexure dated 19.08.2024 in GSTIN:33AXJPS7963E1Z2/2019-20 passed by the first respondent for the FY 2019-20.For Petitioner : M/s.N.V.LakhsmiFor Respondents : Mr.V.Prashanth, Government Advocate for R1 and R3.ORDERThe present writ petition is filed challenging the impugned order passed by the first respondent dated 19.08.2024 relating to the assessment year 2019-20.2. The petitioner is engaged in the business of outdoor catering and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2019-20, 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 mismatch between GSTR-8 and GSTR-1. 2.1. Pursuant thereto, a notice in ASMT-10 was issued on 07.03.2022, followed by DRC-01 on 30.05.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. Hence, the impugned order came to be passed, confirming the proposal. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 20253. The impugned order is challenged on the premise 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.4. 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. The learned counsel for the petitioner would then 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. 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 is submitted that there is bank attachment and the same may be lifted to which the learned Government Advocate appearing for the first and third respondents does not have any 3/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025serious objection.5. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 19.08.2024 is set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondents 1 and 3, 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 with the above direction shall be completed within a period of four weeks from the date of receipt of copy of this order.4/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 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.6. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 5/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025 30.01.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NoshkTo: 1.Deputy Commercial Tax Officer (ST) Sholinganallur Assessment Circle, No.241, Second Floor, Integrated Building of Commercial Taxes and Registration Department,6/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025 Farnpet, Chennai 600 035.2.The Branch Manager, Axis Bank, No.284/6, Lakshman Nagar, Khandan Chavadi, Perungudi, Chennai 600 096.3.Assistant Commissioner (ST), (FAC), Sholinganallur Assessment Circle, 2nd Floor, Integrated Building for Registration and Commercial Taxes Departments, Nandanam, Chennai 600 035.MOHAMMED SHAFFIQ, J.shk7/8 https://www.mhc.tn.gov.in/judis W.P.No.3314 of 2025W.P. No.3314 of 2025andW.M.P.Nos.3681, 3683, 3684 and 3686 of 202530.01.2025(1/2)8/8