High Court · 2025

W.P.No.8972 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 19.03.2025CoramThe Hon'ble Mr.Justice Krishnan RamasamyW.P.No.8972 of 2025andW.M.P.Nos.10079 and 10080 of 2025 M/s.Sumathi Agencies,Rep: by its Proprietrix Mrs.Sumathi,R.S.No.73/3A, Cuddalore Main Road,Vadalur, Cuddalore,Tamil Nadu-607 303. ... Petitioner..Vs..Deputy Commercial Tax OfficerCuddalore (Taluk)Cuddalore, Tamil Nadu. ... RespondentPrayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus to call for the records of the assessment proceedings in GSTIN:33GSXPS1174Q1ZK dated 29.08.2024 for the year 2019-20 and to quash the impugned order passed therein and direct the respondent to pass fresh orders as per the guidelines issued by the Finance Department Circular No.183/15/27.12.2022 GST dated 27.12.2022 after providing an opportunity of personal hearing to the petitioner in this case.1/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 For Petitioner : Mr.C.Baktha SiromoniFor Respondent : Mr.V.Prashanth Kiran Government Advocate (Taxes) ORDERThe challenge in this writ petition is to the order dated 29.08.2024 passed by the respondent and to quash the same and direct the respondent to pass fresh orders as per the guidelines issued by the Finance Department Circular No.183/15/27.12.2022 GST dated 27.12.2022 after providing an opportunity of personal hearing to the petitioner.2. Mr.V.Prashanth Kiran, learned Government Advocate (Taxes), takes notice on behalf of the respondent.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 21.06.2023 followed by three reminder notices dated 18.07.2023, 18.10.2023 and 20.01.2024 were issued to the petitioner by uploading the same in the GST portal, without serving them through physical mode. Therefore, the 2/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 petitioner was not aware of the same and and hence could not file its reply. Subsequently, respondent passed the impugned assessment order dated 29.08.2024, demanding tax along with interest and penalty for the Assessment Year 2019-2020. Subsequently, the bank account of the petitioner was freezed. 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. He further submitted that the respondent has not followed the instructions given by the Government of India in Circular No.136/06/2020-GST dated 03.04.2020, for levy of interest and penalty. Hence he prays to set aside the impugned order. 6. The learned Government Advocate (Taxes) appearing for the Respondent submitted that though the Show Cause Notice as well as the reminder notices were issued to the Petitioner, by uploading the same in the GST portal, the petitioner neither failed to submit its reply nor appeared for personal hearing and hence impugned assessment order came to be passed.3/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 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 liability made by the respondent 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 Government Advocate (Taxes) appearing for the Respondent has no serious objection.8. Heard the learned counsel for the petitioner and the learned Government Advocate (Taxes) for the Respondent and also perused the materials available on record. 9. In the present case, since all the notices were uploaded in the GST portal, 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.8972 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 29.08.2024 passed by the Respondent. Accordingly, this Court passes the following order:-(i) The impugned order dated 29.08.2024 is set aside and the matter is remanded to the 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.5/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 (iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days 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, 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. 19.03.2025Speaking/Non-speaking orderIndex : Yes / NoNeutral Citation : Yes / Noarr6/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 ToDeputy Commercial Tax OfficerCuddalore (Taluk)Cuddalore, Tamil Nadu.7/8 https://www.mhc.tn.gov.in/judis W.P.No.8972 of 2025 Krishnan Ramasamy,J., arrW.P.No.8972 of 202519.03.20258/8