Tvl Ramvel Pharmacy v. The State Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P. Nos.2727 and 2728 of 2025 Tvl.Ramvel Pharmacy, Represented by its Proprietor Muthalagu Baskaran, 20, Bharathi Nagar, Kamarajar Road, Upplipalayam, Coimbatore 641 015.
... Petitioner Vs.
The State Tax Officer, Singanallur North Circle, Commercial Tax Building, Dr.Balasundaram Road, Coimbatore 641 018.
... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, call for the records pertaining to the impugned order in Form GST DRC 07 bearing reference no.ZD330424043429H/2018-19 dated 05.04.2024 issued by the Respondent and quash the same.
For Petitioner : Mr.G.Derrick Sam For Respondent : Mrs.K.Vasanthamala 1/7
Government Advocate
ORDER
The present writ petition is filed challenging the impugned order dated 31.03.2024 and the consequential summary of the order in Form DRC-07 dated 05.04.2024 relating to the assessment year 2018-19.
2. It is submitted by the learned counsel for the petitioner that the petitioner is registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, on verification of the returns filed by the petitioner, it was noticed that there was a mismatch between GSTR-3B and GSTR-2A.
3. Pursuant thereto, a notice in Form ASMT-10 dated 09.10.2023 was issued along with opportunity of personal hearing, followed by a show cause notice in Form DRC-01 dated 08.01.2024 issued with opportunity of personal hearing on 07.02.2024 and reminder notices thereon. However, the petitioner had neither filed its reply nor availed the opportunity for personal hearing and thus the impugned order came to be passed confirming the proposal. 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 2/7
by tender or sending it by RPAD, instead it had been uploaded under " view additional notices and orders" tab on 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 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.
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.
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6. By consent of both parties, the writ petition stands disposed of on the following terms:
a) The impugned order dated 31.03.2024 and the consequential summary of the order dated 05.04.2024 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 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 4/7
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 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.
28.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No jd To:
The State Tax Officer, Singanallur North Circle, Commercial Tax Building, Dr.Balasundaram Road, Coimbatore 641 018.
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MOHAMMED SHAFFIQ, J.
jd 28.01.2025 7/7