Asp Textiles v. State Tax Officer Salem Bazaar Circle
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P.No.2319 of 2025 and W.M.P.Nos.2642 & 2643 of 2025 ASP Textiles, Rep by its Proprietor, Arthanari Sekar, 52, Narayanan Street, Ammapet, Salem, Tamil Nadu 636 003.
...Petitioner
Vs.
State Tax Officer, Salem Bazaar Circle, No.17, Pitchards Road, Salem 636 007.
...Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue Writ of Certiorari, to call for the impugned order of the respondent passed in GSTIN/33BXQPS2181C1ZE/2019-20 dated 05.08.2024 and quash the same and issue any other writ or pass such further or other order as this Court may deem fit.
For Petitioner : Ms.Divya.A for Mr.N.Murali For Respondent : Mr.G.Nanmaran Special Government Pleader 1/7
ORDER
The present Writ Petition is filed challenging the impugned order dated 05.08.2024 passed by the respondent relating to the assessment year 2019-20.
2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of textile works 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 the appropriate taxes. However, on scrutiny of the return for the tax period 2019-20, it was noticed that there was mismatch between GSTR3B and GSTR-2A.
3. Subsequently, a show cause notice in Form DRC-01 was issued to the petitioner on 30.12.2022 through common portal, followed by reminder notices thereon and personal hearing opportunity was also granted to the petitioner. However, the petitioner had neither filed any reply nor availed of opportunity of personal hearing. However, the impugned order came to be passed, confirming the proposals. 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 2/7
alleged discrepancies.
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/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 objections to the proposal, to which the learned Special Government Pleader appearing for the respondent does not have any serious objection. 3/7
6. By consent of parties, this writ petition stands disposed of on the following terms:
a) The impugned order dated 05.08.2024 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 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 4/7
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.
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7. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
28.01.2025 Speaking (or) Non Speaking Order jd To State Tax Officer, Salem Bazaar Circle, No.17, Pitchards Road, Salem 636 007.
MOHAMMED SHAFFIQ, J.
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jd 28.01.2025 7/7