High Court · 2025

W.P.No.2055 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED :27.01.2025CORAMTHE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.2055 of 2025andW.M.P.Nos.2408 and 2410 of 2025Tvl.Vishal Automobiles,Represented by its Proprietor Surendhar SinghGSTIN:33BQPPS0918D1ZU12, Nachiyappa 2nd Street,Erode, Tamil Nadu 638 001. ... PetitionerVs.Deputy Commercial Tax Officer-II,Park Road Assessment Circle,Commercial Taxes Building, No.1,Brough Road, Erode 638 001. ... RespondentPRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records relating to the impugned order bearing 33BQPPS0918D1ZU/2018-19 dated 09.01.2024 along with the summary order Form GST DRC-07 bearing Reference No.ZD330124057744J issued on 12.01.2024 passed by the respondent and quash the same.1/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025For Petitioner : Mr.M.S.Sanjay NikaashFor Respondent : Mr.C.Harsha Raj, Additional Government Pleader.ORDERThe present writ petition is filed challenging the impugned order passed by the respondent dated 09.01.2024 relating to the assessment year 2018-19 and consequential summary order dated 12.01.2024.2. The petitioner is engaged in the retail and wholesale business of automobile spares and is registered under the Goods and Services Tax Act, 2017. During the relevant period viz., 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, on verification of the petitioner's monthly return in Form GSTR-1, GSTR-3B and Form GSTR-2A, it was noticed that there was an alleged mismatch between GSTR-1 and GSTR-3B. 2.1. Pursuant thereto, a notice in DRC-01A was issued on 12.10.2023, followed by a Show Cause Notice on 25.11.2023 and reminders on 27.12.2023 and 03.01.2024. Personal hearing was offered on 21.12.2023. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. Hence, the impugned order came to be passed, 2/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025confirming the proposal. 3. The impugned order is challenged on the premise 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.4. 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.. The learned counsel for the petitioner would then 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. It is submitted by the learned counsel for the petitioner that the petitioner had filed an appeal dated 14.05.2024 before the Appellate Authority along with 10% pre-deposit, which has been rejected on the ground of being barred by limitation and his 3/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025only request is that the same may be adjusted towards 25% of the disputed tax, to which, the learned Additional Government Pleader 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 09.01.2024 and the consequential summary order dated 12.01.2024 are 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 4/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025payment 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 5/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025receipt 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. 27.01.2025Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Noshk6/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025To: Deputy Commercial Tax Officer-II,Park Road Assessment Circle,Commercial Taxes Building, No.1,Brough Road, Erode 638 001.7/8 https://www.mhc.tn.gov.in/judis W.P.No.2055 of 2025MOHAMMED SHAFFIQ, J.shkW.P. No.2055 of 2025andW.M.P.Nos.2408 and 2410 of 202527.01.20258/8