High Court · 2025

W.P.No.21 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 06.01.2025CORAM THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQW.P.No.21 of 2025and W.M.P.Nos.20 & 24 of 2025Sri Saraswathi Cashews Agency,Rep. By its Proprietor Mr.Boopathy3/31, North Street,South Melmampattu,Cuddalore 607 103.... PetitionerVs.The State Tax Officer (ST),Paruti Town Assessment Circle,Commercial Taxes Building,Kumbakonam Road, Panruti 607 106Cuddalore District. ...RespondentPRAYER : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, calling for the records on the file of the respondent in proceedings dated 29.04.2024 in proceedings GSTIN / 33APHPB9132L1ZX / 2018-19 and quash the same and direct the respondent to pass fresh orders after 1/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025giving reasonable opportunity to the petitioner. For Petitioner: Mr.S.Kumar for Mr.N.R.RajagopalanFor Respondent : Mr.C.Harsha Raj, Additional Government PleaderORDERThe present Writ Petition is filed challenging the impugned order dated 29.04.2024 passed by the respondent relating to the assessment year 2018-2019.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of purchasing Cashew kernel from sellers and process the same and sell the cashew oil and wastes to the prospective buyers and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-2019, the petitioner had filed its returns and paid the appropriate taxes. However, during the scrutiny of the returns under Section 61 of the Act, it was noticed that there was discrepancies in the GSTR-3B which was filed by the petitioner. 3. It is submitted by the learned counsel for the petitioner that ASMT-10 2/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025was issued to the petitioner on 17.05.2023, followed by an intimation notice in Form DRC-01A on 18.08.2023 and a show cause notice in Form DRC-01 on 03.01.2024. Further, three reminder notices were issued to the petitioner along with personal hearing opportunities. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. It is submitted by the learned counsel for the petitioner that neither the show cause notices 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 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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.3/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 20255. 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, to which the learned Additional Government Pleader appearing for the respondent does not have any serious objection.6. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 29.04.2024 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 4/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025balance 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 with 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 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 5/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025this order, the impugned order of assessment shall stand restored.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 06.01.2025Index : Yes / NoInternet : Yes/ NojdToThe State Tax Officer (ST),Paruti Town Assessment Circle,Commercial Taxes Building,Kumbakonam Road, Panruti 607 106Cuddalore District.6/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025MOHAMMED SHAFFIQ , J. jdW.P.No.21 of 202506.01.20257/7

W.P.No.21 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 06.01.2025CORAM THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQW.P.No.21 of 2025and W.M.P.Nos.20 & 24 of 2025Sri Saraswathi Cashews Agency,Rep. By its Proprietor Mr.Boopathy3/31, North Street,South Melmampattu,Cuddalore 607 103.... PetitionerVs.The State Tax Officer (ST),Paruti Town Assessment Circle,Commercial Taxes Building,Kumbakonam Road, Panruti 607 106Cuddalore District. ...RespondentPRAYER : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, calling for the records on the file of the respondent in proceedings dated 29.04.2024 in proceedings GSTIN / 33APHPB9132L1ZX / 2018-19 and quash the same and direct the respondent to pass fresh orders after 1/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025giving reasonable opportunity to the petitioner. For Petitioner: Mr.S.Kumar for Mr.N.R.RajagopalanFor Respondent : Mr.C.Harsha Raj, Additional Government PleaderORDERThe present Writ Petition is filed challenging the impugned order dated 29.04.2024 passed by the respondent relating to the assessment year 2018-2019.2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of purchasing Cashew kernel from sellers and process the same and sell the cashew oil and wastes to the prospective buyers and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-2019, the petitioner had filed its returns and paid the appropriate taxes. However, during the scrutiny of the returns under Section 61 of the Act, it was noticed that there was discrepancies in the GSTR-3B which was filed by the petitioner. 3. It is submitted by the learned counsel for the petitioner that ASMT-10 2/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025was issued to the petitioner on 17.05.2023, followed by an intimation notice in Form DRC-01A on 18.08.2023 and a show cause notice in Form DRC-01 on 03.01.2024. Further, three reminder notices were issued to the petitioner along with personal hearing opportunities. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. It is submitted by the learned counsel for the petitioner that neither the show cause notices 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 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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.3/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 20255. 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, to which the learned Additional Government Pleader appearing for the respondent does not have any serious objection.6. By consent of both parties, the writ petition stands disposed of on the following terms:a) The impugned order dated 29.04.2024 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 4/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025balance 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 with 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 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 5/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025this order, the impugned order of assessment shall stand restored.7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 06.01.2025Index : Yes / NoInternet : Yes/ NojdToThe State Tax Officer (ST),Paruti Town Assessment Circle,Commercial Taxes Building,Kumbakonam Road, Panruti 607 106Cuddalore District.6/7 https://www.mhc.tn.gov.in/judis W.P.No.21 of 2025MOHAMMED SHAFFIQ , J. jdW.P.No.21 of 202506.01.20257/7