High Court · 2025

W.P. No.1784 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 27.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1784 of 2025andWMP.Nos.2034 & 2035 of 2025Sri Dharsinee EnterprisesRep.by its Authorized Signatory,Rajesh Nithya,13, Muthuramalingam Street,Ekkattuthangal, Chennai,Tamil Nadu – 600 032. ... PetitionerVs.Deputy State Tax Officer-1 (FAC)Ekkattuthangal Assessment Circle,Integrated Commercial Tax and Registered Department,Nandanam, Chennai -600 035. ... Respondent PRAYER : Writ Petition filed under Article 226 of the Constitution of India seeking for a Writ of Certiorari to call for the impugned order of the respondent passed in GSTIN/33ANGPN0185L1ZV/2019-20 dated 17.08.2024 and quash the same.For Petitioner ... Ms.DivyaFor Respondent... Mr.G.Nanmaran Spl.Govt.Pleader1/7 https://www.mhc.tn.gov.in/judis W.P. No.1784 of 2025ORDERThe present Writ Petition is filed challenging the impugned order passed by the respondent dated 17.08.2024 relating to the assessment year 2019-20. 2. The petitioner is engaged in the business of Insulating fittings of Ceramics. The petitioner is a registered under the Central Goods and Service Tax Act, 2017 and the Tamil Nadu Goods & Service Tax Act. During the relevant period, the petitioner had filed its return and paid appropriate taxes. However, on examination of the information furnished in the return under various heads and also the information furnished in GSTR – 01, GSTR – 2A, GSTR – 3B, EWB and other records, there was a mismatch between GSTR 1 and GSTR 9 and the discrepancies were noticed viz., Under declaration of output tax and Excess claim of input tax credit. 2.1. Pursuant thereto, notice was issued in DRC 01 to the petitioner on 22.05.2024 and reminders on 25.06.2024, 10.07.2024 and 19.07.2024. 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.1784 of 2025show 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 Special Government Pleader appearing for the respondent does not have any serious objection. It is further submitted that more than 20% of the disputed tax has already been paid and would request that the same may be adjusted towards 25% of the disputed taxes.5. By consent of parties, the writ petition stands disposed of on the 3/7 https://www.mhc.tn.gov.in/judis W.P. No.1784 of 2025following terms:a) The impugned order dated 17.08.2024 is set aside.b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the 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.4/7 https://www.mhc.tn.gov.in/judis W.P. No.1784 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 5/7 https://www.mhc.tn.gov.in/judis W.P. No.1784 of 2025miscellaneous petitions are closed. Speaking (or) Non Speaking OrderIndex : Yes/ No27.01.2025Neutral Citation: Yes/NosmsToDeputy State Tax Officer-1 (FAC)Ekkattuthangal Assessment Circle,Integrated Commercial Tax and Registered Department,Nandanam, Chennai -600 035.MOHAMMED SHAFFIQ, J.sms6/7 https://www.mhc.tn.gov.in/judis W.P. No.1784 of 2025W.P. No.1784 of 2025and WMP.Nos.2034 & 2035 of 202527.01.20257/7