High Court · 2025

W.P.No.4532 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 27.03.2025CoramThe Hon'ble Mr.Justice Krishnan RamasamyW.P.No.4532 of 2025andW.M.P.Nos.5054 and 5056 of 2025 M/s.Spark Automation,Reptd. by its Proprietrix,N.Ruby,Plot No.86, No.44/1A1,Sri Metha Nagar, Kundrathur,Kancheepuram District-600 069. ... Petitioner..Vs..1. The Deputy State Tax Officer, Sriperumbudur Assessment Circle, Integrated Commercial Taxes Buildings, No.4/109, Bangalore-Chennai Highway, Varadarajapuram, Nazarathpet, Chennai- 600 123.2. The Deputy Commissioner (ST), Kancheepuram Zone, 1st Floor, Commercial Taxes Buildings, Collectorate Campus, Kancheepuram-631 501. ... Respondents1/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 Prayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari to call for the records pertaining to the impugned order dated 13.08.2024 passed by the 1st respondent against the petitioner's firm vide GSTIN-33AZLPR1672F1Z9, for the Assessment Year 2019-2020 and quash the same as illegal, arbitrary and against the principles of natural justice. For Petitioner : Mr.K.M.MalarmannanFor Respondents : Mr.T.N.C.Kaushik (Taxes) Additional Government Pleader ORDERThe challenge in this writ petition is to the order dated 13.08.2024 passed by the 1st respondent and to quash the same.2. Mr.T.N.C.Kaushik, learned Additional Government Pleader (Taxes), takes notice on behalf of the respondents.3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission stage itself.4. The learned counsel for the petitioner submits that the show cause notice dated 18.05.2024 was issued to the petitioner by uploading the same in the GST portal, without serving it through physical mode. Since the petitioner 2/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 has not viewed the GST portal, the petitioner was not aware of the show cause notice and hence could not file its reply. Subsequently, the 1st respondent passed the impugned assessment order dated 13.08.2024, demanding tax along with interest and penalty for the Assessment Year 2019-2020 and the same was also uploaded in the GST Portal. The petitioner came to know of the impugned assessment order only belatedly.5. Further, he would submit that impugned assessment order came to be passed without affording an opportunity of personal hearing to the Petitioner and therefore the same is passed in violation of principles of natural justice. Hence she prays to set aside the impugned order. 6. The learned Additional Government Pleader (Taxes) appearing for the Respondent submitted that though the Show Cause Notice was issued to the Petitioner, by uploading the same in the GST portal, the petitioner failed to submit its reply and hence impugned assessment order came to be passed. 7. In reply, the learned counsel for the petitioner would fairly submit that the petitioner is now ready and willing to pay 25% of the disputed tax 3/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 liability made by the respondents in the event of providing an opportunity to them to file their reply along with the required documents to substantiate their claim, for which, the learned Additional Government Pleader (Taxes) appearing for the Respondents has no serious objection.8. Heard the learned counsel for the petitioner and the learned Additional Government Pleader (Taxes) for the Respondents and also perused the materials available on record. 9. In the present case, since the show cause notice was issued to the petitioner by uploading in the GST portal without serving physical copy of the same, the petitioner was unaware of the same and hence could not file its reply. Under such circumstances, impugned order came to be passed. 10. It is settled law that violation of principles of natural justice is a failure of due process. If any order is passed against the petitioner with demand, that order has to be passed after giving an opportunity of personal hearing to the petitioner otherwise, it will amount to depriving the interest of the petitioner and the same amounts to violation of principles of natural justice.4/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 11. In the case on hand, the impugned order came to be passed without hearing the petitioner. Hence, this Court is of the view that the impugned order passed is in violation of principles of natural justice and it is just and necessary to provide an opportunity to the petitioner to establish their case on merits. In such view of the matter, this Court is inclined to set aside the impugned assessment order dated 13.08.2024 passed by the 1st Respondent. Accordingly, this Court passes the following order:-(i) The impugned order dated 13.08.2024 is set aside and the matter is remanded to the 1st Respondent for fresh consideration on condition that as volunteered by the Petitioner, they shall pay 25% of disputed tax to the Respondent within a period of four weeks from the date of receipt of a copy of this order and the setting aside of the impugned order will take effect from the date of payment of the said amount.(ii) The Petitioner shall file their reply/objection along with the required documents, if any, within a period of two weeks thereafter.(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days 5/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 clear notice by fixing the date of personal hearing to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.(iv) Considering the fact that the impugned order itself has been set aside, this Court is of the opinion that the attachment, if any made on the bank account of the Petitioner, cannot survive any longer and hence, it is lifted. As a sequel, the respondent is directed to instruct the concerned bank to release the attachment on the bank account of the petitioner, immediately upon the production of proof with regard to the payment of 25% as stated above.12. Accordingly, the writ petition is disposed of. There is no order as to costs. Consequently, the connected miscellaneous petitions are closed. 27.03.2025Speaking/Non-speaking orderIndex : Yes / NoNeutral Citation : Yes / Noarr6/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 To1. The Deputy State Tax Officer, Sriperumbudur Assessment Circle, Integrated Commercial Taxes Buildings, No.4/109, Bangalore-Chennai Highway, Varadarajapuram, Nazarathpet, Chennai- 600 123.2. The Deputy Commissioner (ST), Kancheepuram Zone, 1st Floor, Commercial Taxes Buildings, Collectorate Campus, Kancheepuram-631 501.7/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 Krishnan Ramasamy,J., arrW.P.No.4532 of 202527.03.20258/8

W.P.No.4532 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 27.03.2025CoramThe Hon'ble Mr.Justice Krishnan RamasamyW.P.No.4532 of 2025andW.M.P.Nos.5054 and 5056 of 2025 M/s.Spark Automation,Reptd. by its Proprietrix,N.Ruby,Plot No.86, No.44/1A1,Sri Metha Nagar, Kundrathur,Kancheepuram District-600 069. ... Petitioner..Vs..1. The Deputy State Tax Officer, Sriperumbudur Assessment Circle, Integrated Commercial Taxes Buildings, No.4/109, Bangalore-Chennai Highway, Varadarajapuram, Nazarathpet, Chennai- 600 123.2. The Deputy Commissioner (ST), Kancheepuram Zone, 1st Floor, Commercial Taxes Buildings, Collectorate Campus, Kancheepuram-631 501. ... Respondents1/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 Prayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari to call for the records pertaining to the impugned order dated 13.08.2024 passed by the 1st respondent against the petitioner's firm vide GSTIN-33AZLPR1672F1Z9, for the Assessment Year 2019-2020 and quash the same as illegal, arbitrary and against the principles of natural justice. For Petitioner : Mr.K.M.MalarmannanFor Respondents : Mr.T.N.C.Kaushik (Taxes) Additional Government Pleader ORDERThe challenge in this writ petition is to the order dated 13.08.2024 passed by the 1st respondent and to quash the same.2. Mr.T.N.C.Kaushik, learned Additional Government Pleader (Taxes), takes notice on behalf of the respondents.3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission stage itself.4. The learned counsel for the petitioner submits that the show cause notice dated 18.05.2024 was issued to the petitioner by uploading the same in the GST portal, without serving it through physical mode. Since the petitioner 2/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 has not viewed the GST portal, the petitioner was not aware of the show cause notice and hence could not file its reply. Subsequently, the 1st respondent passed the impugned assessment order dated 13.08.2024, demanding tax along with interest and penalty for the Assessment Year 2019-2020 and the same was also uploaded in the GST Portal. The petitioner came to know of the impugned assessment order only belatedly.5. Further, he would submit that impugned assessment order came to be passed without affording an opportunity of personal hearing to the Petitioner and therefore the same is passed in violation of principles of natural justice. Hence she prays to set aside the impugned order. 6. The learned Additional Government Pleader (Taxes) appearing for the Respondent submitted that though the Show Cause Notice was issued to the Petitioner, by uploading the same in the GST portal, the petitioner failed to submit its reply and hence impugned assessment order came to be passed. 7. In reply, the learned counsel for the petitioner would fairly submit that the petitioner is now ready and willing to pay 25% of the disputed tax 3/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 liability made by the respondents in the event of providing an opportunity to them to file their reply along with the required documents to substantiate their claim, for which, the learned Additional Government Pleader (Taxes) appearing for the Respondents has no serious objection.8. Heard the learned counsel for the petitioner and the learned Additional Government Pleader (Taxes) for the Respondents and also perused the materials available on record. 9. In the present case, since the show cause notice was issued to the petitioner by uploading in the GST portal without serving physical copy of the same, the petitioner was unaware of the same and hence could not file its reply. Under such circumstances, impugned order came to be passed. 10. It is settled law that violation of principles of natural justice is a failure of due process. If any order is passed against the petitioner with demand, that order has to be passed after giving an opportunity of personal hearing to the petitioner otherwise, it will amount to depriving the interest of the petitioner and the same amounts to violation of principles of natural justice.4/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 11. In the case on hand, the impugned order came to be passed without hearing the petitioner. Hence, this Court is of the view that the impugned order passed is in violation of principles of natural justice and it is just and necessary to provide an opportunity to the petitioner to establish their case on merits. In such view of the matter, this Court is inclined to set aside the impugned assessment order dated 13.08.2024 passed by the 1st Respondent. Accordingly, this Court passes the following order:-(i) The impugned order dated 13.08.2024 is set aside and the matter is remanded to the 1st Respondent for fresh consideration on condition that as volunteered by the Petitioner, they shall pay 25% of disputed tax to the Respondent within a period of four weeks from the date of receipt of a copy of this order and the setting aside of the impugned order will take effect from the date of payment of the said amount.(ii) The Petitioner shall file their reply/objection along with the required documents, if any, within a period of two weeks thereafter.(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days 5/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 clear notice by fixing the date of personal hearing to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.(iv) Considering the fact that the impugned order itself has been set aside, this Court is of the opinion that the attachment, if any made on the bank account of the Petitioner, cannot survive any longer and hence, it is lifted. As a sequel, the respondent is directed to instruct the concerned bank to release the attachment on the bank account of the petitioner, immediately upon the production of proof with regard to the payment of 25% as stated above.12. Accordingly, the writ petition is disposed of. There is no order as to costs. Consequently, the connected miscellaneous petitions are closed. 27.03.2025Speaking/Non-speaking orderIndex : Yes / NoNeutral Citation : Yes / Noarr6/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 To1. The Deputy State Tax Officer, Sriperumbudur Assessment Circle, Integrated Commercial Taxes Buildings, No.4/109, Bangalore-Chennai Highway, Varadarajapuram, Nazarathpet, Chennai- 600 123.2. The Deputy Commissioner (ST), Kancheepuram Zone, 1st Floor, Commercial Taxes Buildings, Collectorate Campus, Kancheepuram-631 501.7/8 https://www.mhc.tn.gov.in/judis W.P.No.4532 of 2025 Krishnan Ramasamy,J., arrW.P.No.4532 of 202527.03.20258/8