Mrs.Narala Ramanaiah v. The Assistant Commissioner (St)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.04.2025 Coram The Honourable Mr.Justice Krishnan Ramasamy and W.M.P.Nos.18010 & 18012 of 2025 Mrs.Narala Ramanaiah Proprietor M/s.Sangeetha Auto Works No.13, 3B, NRS Road, Thiruvottiyur, Chennai- 600 019.
...Petitioner
Vs.
The Assistant Commissioner (ST) Thiruvottiyur Assessment Circle No.32, Integrated Commercial Taxes Office Complex, Elephant Gate Bridge, Chennai-600 003.
...Respondent
Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorarified Mandamus to call for the records of the respondent in Show Cause Notice issued in DRC-01 dated 24.05.2024 and the consequential order in GSTIN:33AHRPR2644F1Z6/2019-20 along with Form GST DRC-07 vide Reference No.ZD330824213889Z dated 23.08.2024 and quash the same as 1/8
illegal, erroneous and apart from being barred by limitation and further direct the respondent to consider the objections filed dated 10.04.2023 at the stage of Scrutiny of returns pursuant to issuance of ASMT- 10 dated 27.04.2022.
For Petitioner : Mr.P.Arumugam For Respondent : Ms.Amirthapoonkodi Dinakaran Government Advocate (Taxes)
ORDER
Ms.Amirthapoonkodi Dinakaran, learned Government Advocate (Taxes), takes notice on behalf of the respondent. With consent, the main Writ Petition is taken up for final disposal at the stage of admission itself.
2. The challenge in this Writ Petition is to the show cause notice dated 24.05.2024 and the consequential assessment order dated 23.08.2024 passed by the respondent for the AY 2019-20 and to quash the same.
3. The learned counsel for the petitioner would submit that the respondent has issued a show cause notice in Form DRC 01 on 24.05.2024 2/8
followed by personal hearing and reminder notices dated 15.07.2024 by uploading the same in the GST portal without serving physical copy of the same to the petitioner. Therefore, the petitioner was not aware of those notices and failed to file reply. Since the petitioner failed to file reply to the said show cause notice, the respondent has confirmed the proposals contained in the show cause notice and passed the present impugned order. Therefore, the learned counsel would submit that the impugned order suffers from violation of principles of natural justice and is liable to be aside, as the petitioner has not been heard before passing the impugned order. 3.1. It is also submitted by the learned counsel for the petitioner that the petitioner is ready and willing to deposit 25% of the disputed tax, in the event, this Court is inclined to set aside the impugned order and remand the matter back to the Authority for fresh consideration.
4. The learned Government Advocate (Taxes) for the respondent fairly submitted that since the petitioner has voluntarily come forward to deposit 25% of the disputed tax, the prayer sought for by the petitioner may 3/8
be considered.
5. Considering the above submissions made by the learned counsel on either side and upon perusal of the materials, it is evident that the impugned show cause notice was uploaded on the GST Portal Tab. According to the petitioner, the petitioner was not aware of the issuance of the show cause notice issued through the GST Portal and the original of the said show cause notice was not furnished to them. In such circumstances, this Court is of the view that the impugned assessment order came to be passed without affording any opportunity of personal hearing to the petitioner, confirming the proposals contained in the show cause notice.
6. No doubt sending notice by uploading in portal is a sufficient service, but, the Officer who is sending the repeated reminders, inspite of the fact that no response from the petitioner to the show cause notices etc., the Officer should have applied his/her mind and explored the possibility of sending notices by way of other modes prescribed in Section 169 of the GST Act, which are also the valid mode of service under the Act, otherwise 4/8
it will not be an effective service, rather, it would only fulfilling the empty formalities. Merely passing an ex parte order by fulfilling the empty formalities will not serve any useful purpose and the same will only pave way for multiplicity of litigations, not only wasting the time of the Officer concerned, but also the precious time of the Appellate Authority/Tribunal and this Court as well. Thus, when there is no response from the tax payer to the notice sent through a particular mode, the Officer who is issuing notices should strictly explore the possibilities of sending notices through some other mode as prescribed in Section 169(1) of the Act, preferably by way of RPAD, which would ultimately achieve the object of the GST Act.
7. Therefore, this Court finds that there is a lack of opportunities being provided to serve the notices/orders etc., effectively to the petitioner. Hence, this Court is inclined to set-aside the impugned order with terms, by issuing the following directions:- i) The impugned order passed by the respondent dated 23.08.2024 is set aside.
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ii) Consequently, the matter is remanded to the respondent for fresh consideration.
iii) The petitioner is granted liberty to deposit 25% of the disputed tax, which the petitioner themselves had voluntarily came forward to make such payment, within a period of two weeks from the date of receipt of a copy of this order.
iv) Thereafter, the petitioner is directed to file a reply along with supportive documents within a period of two weeks. v) Thereupon, the respondent is directed to consider the reply and shall issue a clear 14 days notice affording an opportunity of personal hearing to the petitioner and shall decide the matter in accordance with law.
8. With the above observations & directions, this Writ Petition is disposed of. No costs. Consequently, connected Miscellaneous Petitions are closed.
30.04.2025 arr Index : yes/no 6/8
To The Assistant Commissioner (ST) Thiruvottiyur Assessment Circle No.32, Integrated Commercial Taxes Office Complex, Elephant Gate Bridge, Chennai-600 003.
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Krishnan Ramasamy,J., arr 30.04.2025 8/8