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Madras High CourtWP/1370/2025disposed of

Tvl Sandeep Petroleums v. The State Tax Officer,

2025-01-22Honourable Mr Justice Mohammed Shaffiq6 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 22.01.2025

CORAM

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.1370 of 2024 and W.M.P. Nos.1618 and 1619 of 2025 Tvl.Sandeep Petroleums, Rep. By its Proprietor Mr.Arvind Kumar Punamiya, No.42/8, M.T.H.Road, Mannurpet, Chennai, Tamil Nadu-600 050.

... Petitioner Vs.

The State Tax Officer, Padi Assessment Circle, Room No.426, 4th Floor, Nandanam, Chennai, Tamil Nadu-600 035.

... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari calling for the records of the respondent in order dated 09.08.2024 in GSTN 33AACPA4206G1ZK/2019-20 and quash the same as illegal, arbitrary and in violation of principles of natural justice. For Petitioner : Ms.C.Rekhakumari For Respondent : Mrs.K.Vasanthamala Government Advocate

ORDER

The present writ petition is filed challenging the impugned order dated 09.08.2024 relating to the assessment year 2019-20. 1/6

2. It is submitted by the learned counsel for the petitioner that the petitioner is dealer of petroleum products and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2019-20, the petitioner filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, inter-alia the following discrepancies were noticed: i) GSTR 3B vs. GSTR 1;

ii) GSTR 3B vs. GSTR 2A.

3. It is submitted by the learned counsel for the petitioner that an intimation in ASMT-10 was issued on 24.06.2022, the petitioner filed its reply in ASMT-11 on 05.12.2022. Subsequently, a notice in DRC-01 issued on 24.05.2024 and personal hearing was afforded on 05.07.2024, 22.07.2024 and 30.07.2024 along with reminder notices dated 21.06.2024, 13.07.2024 and 22.07.2024. However, the petitioner had not responded to any of the above notices / intimation, the impugned order was thus passed confirming the proposal. 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.

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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.

5. 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 Government Advocate 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 09.08.2024 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, 3/6

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 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 4/6

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.

7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.

22.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No mka To:

The State Tax Officer, Padi Assessment Circle, Room No.426, 4th Floor, Nandanam, Chennai, Tamil Nadu-600 035.

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MOHAMMED SHAFFIQ, J.

mka 22.01.2025 6/6