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

W.P. No.39346 of 2024IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.12.2024CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQW.P. No.39346 of 2024andW.M.P.Nos.42611 and 42614 of 2024M/s.Jet Knitwears Limited,Rep. By its authorised signatory,No.26, Appachi Nagar, 3rd Street,Tiruppur 641 607. ..Petitioner Vs.The Assistant Commissioner (ST)Lakshmi Nagar Circle,Tiruppur-II, Erode, Tamil Nadu 641 602... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, to call for the records relating to the Impugned Assessment Order dated 24.06.2024 bearing Reference No.ZD330624259927X passed by the respondent and quash the same.For Petitioner : MrA.K.Athiban Vijay For Respondent: Mr.V.Prashanth Kiran Government AdvocatePage 1 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024ORDERThe present writ petition has been filed challenging the impugned order passed by the respondent in Ref.No:ZD330624259927X, dated 24.06.2024, 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 the business of manufacturing and exporting of garments and is registered under the GST Act. During the relevant period of 2019-20, the petitioner has filed the returns and paid appropriate taxes. However, on verification of the returns the following mismatch were noticed: a) Mismatch between GSTR 3B and GSTR 1b) Mismatch between GSTR-3B and GSTR-2A.3. It is submitted by the learned Counsel for the petitioner that an intimation in ASMT-10 was issued on 27.05.2022. This was followed by a notice in DRC 01A dated 16.12.2022 and a notice in DRC01 dated 19.01.2023. Thereafter, a reminder dated 13.07.2023 was also issued to Page 2 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024the petitioner. However, the petitioner had neither filed its reply nor availed the opportunities for personal hearings. Hence, the impugned order came to be passed, confirming the proposal. Neither the show 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 'View Additional Notices Tab' 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 also submitted by the learned counsel for the petitioner had filed an appeal along with 10 % pre-deposit, which was however rejected on the ground of being barred by limitation. It is further submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he 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 Page 3 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024to 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 further submitted that subsequent to the passing of the impugned order, the petitioner had filed an appeal along with 10% pre-deposit and would request that the same may be adjusted towards 25% of the disputed tax, to which, the learned Government Advocate appearing for the respondent does not have any serious objection 5. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 24.06.2024 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.Page 4 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024c) It is open to the petitioner to produce material to show that the entire taxes are paid. 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 Page 5 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024impugned 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.Page 6 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 20246. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 21.12.2024 Speaking (or) Non Speaking OrderIndex:Yes/NoNeutral Citation: Yes/NosppTo:The Assistant Commissioner (ST)Lakshmi Nagar Circle,Tiruppur-II, Erode, Tamil Nadu 641 602.Page 7 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024MOHAMMED SHAFFIQ, J.sppW.P. No.39346 of 2024andW.M.P.Nos.42611 and 42614 of 202421.12.2024Page 8 of 8

W.P. No.39346 of 2024IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.12.2024CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQW.P. No.39346 of 2024andW.M.P.Nos.42611 and 42614 of 2024M/s.Jet Knitwears Limited,Rep. By its authorised signatory,No.26, Appachi Nagar, 3rd Street,Tiruppur 641 607. ..Petitioner Vs.The Assistant Commissioner (ST)Lakshmi Nagar Circle,Tiruppur-II, Erode, Tamil Nadu 641 602... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, to call for the records relating to the Impugned Assessment Order dated 24.06.2024 bearing Reference No.ZD330624259927X passed by the respondent and quash the same.For Petitioner : MrA.K.Athiban Vijay For Respondent: Mr.V.Prashanth Kiran Government AdvocatePage 1 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024ORDERThe present writ petition has been filed challenging the impugned order passed by the respondent in Ref.No:ZD330624259927X, dated 24.06.2024, 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 the business of manufacturing and exporting of garments and is registered under the GST Act. During the relevant period of 2019-20, the petitioner has filed the returns and paid appropriate taxes. However, on verification of the returns the following mismatch were noticed: a) Mismatch between GSTR 3B and GSTR 1b) Mismatch between GSTR-3B and GSTR-2A.3. It is submitted by the learned Counsel for the petitioner that an intimation in ASMT-10 was issued on 27.05.2022. This was followed by a notice in DRC 01A dated 16.12.2022 and a notice in DRC01 dated 19.01.2023. Thereafter, a reminder dated 13.07.2023 was also issued to Page 2 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024the petitioner. However, the petitioner had neither filed its reply nor availed the opportunities for personal hearings. Hence, the impugned order came to be passed, confirming the proposal. Neither the show 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 'View Additional Notices Tab' 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 also submitted by the learned counsel for the petitioner had filed an appeal along with 10 % pre-deposit, which was however rejected on the ground of being barred by limitation. It is further submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he 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 Page 3 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024to 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 further submitted that subsequent to the passing of the impugned order, the petitioner had filed an appeal along with 10% pre-deposit and would request that the same may be adjusted towards 25% of the disputed tax, to which, the learned Government Advocate appearing for the respondent does not have any serious objection 5. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 24.06.2024 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.Page 4 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024c) It is open to the petitioner to produce material to show that the entire taxes are paid. 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 Page 5 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024impugned 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.Page 6 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 20246. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 21.12.2024 Speaking (or) Non Speaking OrderIndex:Yes/NoNeutral Citation: Yes/NosppTo:The Assistant Commissioner (ST)Lakshmi Nagar Circle,Tiruppur-II, Erode, Tamil Nadu 641 602.Page 7 of 8 https://www.mhc.tn.gov.in/judis W.P. No.39346 of 2024MOHAMMED SHAFFIQ, J.sppW.P. No.39346 of 2024andW.M.P.Nos.42611 and 42614 of 202421.12.2024Page 8 of 8