Tvl.Nextech Engineering India Private Limited v. The State Tax Officer (Fac)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 10.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P.No.872 of 2025 and W.M.P.Nos.1044 & 1045 of 2025 TVL.NEXTECH ENGINEERING INDIA PRIVATE LIMITED, REP. BY ITS DIRECTOR MR.CHOI SEONGJIN, SURVEY NO.281/11,281/16, NO.126, SELLAPERUMAL NAGAR, KARANTHANGAL VILLAGE, SRIPERUMBUDUR, KANCHEEPURAM, TAMIL NADU 602 105.
...Petitioner
Vs.
THE STATE TAX OFFICER (FAC), SRIPERUMBUDUR ASSESSMENT CIRCLE, NO.4/109, BANGALORE HIGHWAY ROAD, VARADHARAJAPURAM, NAZARETHPET, CHENNAI 600 123.
...Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue Writ of Certiorarified Mandamus, calling for the records of the Respondent's impugned order in Form GST DRC-07 dated 24.08.2024 bearing Reference No.ZD330824221496C along with the connected detailed order bearing Ref.GSTIN:33AACCN9089R1ZK/2019-2020 dated 24.08.2024, seeking to quash 1/8
the same and consequentially direct the Respondent to provide the Petitioner with an opportunity of hearing.
For Petitioner : Ms.Vipula DS For Respondent : Mrs.K.Vasanthamala Government Advocate
ORDER
The present Writ Petition is filed challenging the impugned order dated 24.08.2024 passed by the respondent relating to the assessment year 2019-20.
2. The petitioner is engaged in the business of installation and repairs of industrial machineries and equipment and is registered under the Goods and Service Tax Act, 2017. During the relevant period 2019-20, the petitioner had filed its return and paid appropriate taxes. While so, on verification of the returns filed by the petitioner, it was noticed that there was mismatch in the outward supplies and mismatch in the Input Tax Credit.
3. The learned counsel for the petitioner submitted that a show cause notice in Form DRC-01 was issued to the petitioner on 16.05.2024 through common 2/8
portal. Thereafter, two reminder notices were issued to the petitioner by providing the personal hearing opportunities on 14.08.2024 and 27.08.2024. However, the petitioner had neither filed its reply nor availed an opportunity of personal hearing. Hence, the impugned order came to be passed, confirming the proposals.
4. The impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment has been served by tendering to the petitioner or by registered post, instead it was uploaded in the common portal under the head "View Additional Notices and Orders" tab, thereby, the petitioner was unaware of the initiated proceedings and thus unable to participate in the adjudication proceedings.
5. 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 3/8
objections to the proposal, to which the learned Government Advocate appearing for the respondent does not have any serious objection.
6. By consent of parties, these writ petitions stands disposed of on the following terms:
a) The impugned order dated 24.08.2024 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 4/8
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 5/8
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.
10.01.2025 Speaking (or) Non Speaking Order jd To THE STATE TAX OFFICER (FAC), SRIPERUMBUDUR ASSESSMENT CIRCLE, NO.4/109, BANGALORE HIGHWAY ROAD, VARADHARAJAPURAM, NAZARETHPET, CHENNAI 600 123.
6/8
MOHAMMED SHAFFIQ, J.
jd 7/8
10.01.2025 8/8