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Madras High CourtWP/2492/2025disposed of

Tvl Tirupathi Metal Mart v. The State Tax Officer

2025-01-28Honourable Mr Justice Mohammed Shaffiq7 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 28.01.2025

CORAM

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.2492 of 2025 and W.M.P.Nos.2811 & 2813 of 2025 Tvl Tirupathi Metal Mart, GSTIN:33ADJPG6680J3ZA, Represented by its Proprietor Shri Gavararam Purohit, No.75/7, Bharti Street, Pappi Gounder Thottam, Chinna Vedampatti Post, Coimbatore 641 049.

... Petitioner Vs.

The State Tax Officer, Saravanampatti West Circle, 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, to call for the records pertaining to impugned assessment order in Form GST DRC-07 bearing reference number ZD330324061082X/2021-22 dated 12.03.2024 issued by the Respondent and quash the same.

For Petitioner : Mr.G.Derrick Sam For respondent : Mr.V.Prashanth Kiran Government Advocate 1/7

ORDER

The present writ petition is filed challenging the impugned order dated 12.03.2024 passed by the respondent relating to the assessment year 2021-22.

2. It is submitted by the learned counsel for the petitioner that the petitioner firm is doing business and is registered under the Goods and Services Tax Act, 2017. During the relevant period 2021-22, the petitioner had filed its returns and paid the appropriate taxes. However, on investigation, it was noticed that the petitioner had availed credit on the basis of the invoices of non-existent dealer and fictitious transactions.

3. Subsequently, an intimation notice in Form DRC-01A dated 19.05.2023, followed by a show cause notice in Form DRC-01 dated 13.07.2023 were issued to the petitioner through GST common portal and reminder notice thereon along with an opportunity of personal hearing on 05.10.2023. The petitioner had submitted its replies on 05.06.2023, 20.07.2023 & 07.11.2023 respectively. However, the objections of the petitioner was rejected on the premise that it was not supported by documentary evidence. Thus, the impugned order came to be passed by the respondent, confirming the proposals. It is submitted by the learned counsel for the petitioner that if the petitioner is 2/7

provided with an opportunity, they would be able to explain the 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 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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes.

6. 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 3/7

which the learned Government Advocate appearing for the respondent does not have any serious objection.

7. By consent of parties, this writ petition stands disposed of on the following terms:

a) The impugned order dated 12.03.2024 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 4/7

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 respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.

8. 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, Saravanampatti West Circle, Dr. Balasundaram Road, Coimbatore 641 018.

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MOHAMMED SHAFFIQ, J.

jd W.P. No.2492 of 2025 28.01.2025 7/7