the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables v. O/o. the Assistant Commissioner of GST Central Excise in W.P
Case Details
W.P. No.36553 of 2024IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 02.12.2024CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.36553 of 2024andWMP Nos.39406 and 39407 of 2024Muthu SenthilkumarD.No.8/498, Bapuji Colony,Sullurpet Town & Mandal,Sri Potti Sriramulu,Tirupati District eariler Nellore District Andhra Pradesh 524 121earlier having additional place of business at New No.31/4, Old No.38/4,Apsara Flats, Park Road, Anna Nagar, West Extension,Chennai 600 101: Petitioner versusThe Deputy State Tax Officer I,Koyambedu Assessment Circle,No.1, 5th Floor, PAPJM Annex Building,Greams Rad, Chennai 600 006: RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India seeking for a Writ of Certiorarified Mandamus calling for the records of the respondent and quash the impugned order dated 21.03.2024 bearing ref. No.ZD3303241340035 along with summary in Form GST DRC-07 passed by the respondent.For Petitioner : Mr.Bharath R. Srinivas1/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024For Respondent :Mr.Prashanth Kiran, Government Advocate ORDERThe present Writ Petition is filed challenging the impugned order passed by the respondent dated 21.03.2024 relating to the assessment year 2018-19. 2. The petitioner is engaged in project work relating to improvements to water supply arrangements and is a registered dealer under Goods and Services Act, 2017. During the relevant period, the petitioner had filed its return and paid appropriate taxes. However, on verification of the GSTR 7 returns filed by the authority, it was found that the petitioner had received monetary equivalent of the supply of goods but had not disclosed the outward supplies made by them in their GSTR 3B returns nor paid the applicable tax at appropriate rates. 2.1. Pursuant thereto, notices were issued to the petitioner in ASMT 10 on 07.02.2021 and 15.02.2021, followed by a notice in DRC 01A on 30.05.2022. A show cause notice was issued in DRC 01 to the petitioner on 21.09.2023. However, the petitioner had neither filed its reply nor paid the appropriate taxes. Hence, the impugned order came to be passed, confirming the proposal.3. It is submitted by the learned counsel for the petitioner that neither the 2/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024show cause notice 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 further 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. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which, the learned Government Advocate appearing for the respondent does not have any serious objection.5. By consent of parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 21.03.2024 is set aside3/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024b) 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 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 of 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 4/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024garnishee 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.02.12.2024 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NomrnToThe Deputy State Tax Officer I,5/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024Koyambedu Assessment Circle,No.1, 5th Floor, PAPJM Annex Building,Greams Rad, Chennai 600 0066/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024MOHAMMED SHAFFIQ, J.mrnW.P. No.36553 of 202402.12.20247/7
W.P. No.36553 of 2024IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 02.12.2024CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.36553 of 2024andWMP Nos.39406 and 39407 of 2024Muthu SenthilkumarD.No.8/498, Bapuji Colony,Sullurpet Town & Mandal,Sri Potti Sriramulu,Tirupati District eariler Nellore District Andhra Pradesh 524 121earlier having additional place of business at New No.31/4, Old No.38/4,Apsara Flats, Park Road, Anna Nagar, West Extension,Chennai 600 101: Petitioner versusThe Deputy State Tax Officer I,Koyambedu Assessment Circle,No.1, 5th Floor, PAPJM Annex Building,Greams Rad, Chennai 600 006: RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India seeking for a Writ of Certiorarified Mandamus calling for the records of the respondent and quash the impugned order dated 21.03.2024 bearing ref. No.ZD3303241340035 along with summary in Form GST DRC-07 passed by the respondent.For Petitioner : Mr.Bharath R. Srinivas1/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024For Respondent :Mr.Prashanth Kiran, Government Advocate ORDERThe present Writ Petition is filed challenging the impugned order passed by the respondent dated 21.03.2024 relating to the assessment year 2018-19. 2. The petitioner is engaged in project work relating to improvements to water supply arrangements and is a registered dealer under Goods and Services Act, 2017. During the relevant period, the petitioner had filed its return and paid appropriate taxes. However, on verification of the GSTR 7 returns filed by the authority, it was found that the petitioner had received monetary equivalent of the supply of goods but had not disclosed the outward supplies made by them in their GSTR 3B returns nor paid the applicable tax at appropriate rates. 2.1. Pursuant thereto, notices were issued to the petitioner in ASMT 10 on 07.02.2021 and 15.02.2021, followed by a notice in DRC 01A on 30.05.2022. A show cause notice was issued in DRC 01 to the petitioner on 21.09.2023. However, the petitioner had neither filed its reply nor paid the appropriate taxes. Hence, the impugned order came to be passed, confirming the proposal.3. It is submitted by the learned counsel for the petitioner that neither the 2/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024show cause notice 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 further 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. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which, the learned Government Advocate appearing for the respondent does not have any serious objection.5. By consent of parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 21.03.2024 is set aside3/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024b) 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 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 of 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 4/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024garnishee 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.02.12.2024 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/NomrnToThe Deputy State Tax Officer I,5/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024Koyambedu Assessment Circle,No.1, 5th Floor, PAPJM Annex Building,Greams Rad, Chennai 600 0066/7 https://www.mhc.tn.gov.in/judis W.P. No.36553 of 2024MOHAMMED SHAFFIQ, J.mrnW.P. No.36553 of 202402.12.20247/7