Tvl. J.V.Fabrics v. The State Tax Officer(Fac)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.2458 of 2025 and W.M.P.Nos.2769 & 2770 of 2025 Tvl. J.V.Fabrics, Rep. by its Managing Partner Venkatesan Eswaran, No 22 A, Pollachi Bye Pass Road, Palladam, Tiruppur, Tamil Nadu.
... Petitioner Vs.
The State Tax Officer (FAC), Palladam-I Circle, Tiruppur-II, Tamil Nadu.
... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, to call for the records of the Impugned Order in Ref. No.ZD330824121667A dated 14.08.2024 under Section 73 of the CGST/TNGST Act, 2017 and uploaded the same along with the summary of order in DRC07 for the Financial Year 2019-20 from the files of the respondent herein, QUASH the same.
For Petitioner : Ms.Aparna Nandakumar For Respondent : Mr.T.N.C.Kaushik Additional Government Pleader 1/6
ORDER
The present writ petition is filed challenging the impugned order 14.08.2024 passed by the respondent relating to the financial year 2019-20.
2. It is submitted by the learned counsel for the petitioner that the petitioner is a manufacturer of automatic and plain powerloom with HSN Codes 84461011 and 84461012 and is registered under the Central Goods and Services Tax Act, 2017. During the relevant period 2019-20, the petitioner had filed its returns and paid appropriate taxes. However, on verification of the returns filed by the petitioner, it reveals that there was mismatch between GSTR-3B and GSTR-2A.
3. It is submitted by the learned counsel for the petitioner that a notice in Form ASMT-10 dated 05.05.2022 was issued to the petitioner, alleging mismatch between GSTR-3B and GSTR-2A and mismatch between e-way bill & GSTR-1. The petitioner had submitted its reply in Form ASMT-11 on 20.02.2023 along with relevant documents. However, without considering the said reply, the respondent has issued a show cause notice in Form DRC-01 dated 18.03.2024 through GST common portal. Thereafter, a personal hearing opportunity was also granted to the petitioner. However, the petitioner had 2/6
neither filed its reply nor availed an opportunity of personal hearing. Hence, the impugned order came to be passed, confirming its proposals. It is also 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 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 Additional Government Pleader 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:
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a) The impugned order dated 14.08.2024 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 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. 4/6
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 5/6
MOHAMMED SHAFFIQ, J.
jd To The State Tax Officer (FAC), Palladam-I Circle, Tiruppur-II, Tamil Nadu.
W.P. No.2458 of 2025 28.01.2025 6/6