Tvl. Jayam Blue Metals, v. The Deputy State Tax Officer -Ii
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 13.06.2024
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.
No.14640 of 2024 and W.M.P.Nos.15905 & 15906 of 2024 Tvl. Jayam Blue Metals, Rep. By its Proprietor - Selvaraj Sivakumar, D.No.92, Myvadi, Udumalpet, Tiruppur - 642 203.
... Petitioner -vsThe Deputy State Tax Officer - II, Office of the Assistant Commissioner (ST), Udumalpet (North) Circle, Pollachi, Coimbatore.
... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorari, calling for the records on the files of respondent in impugned order vide GSTIN: 33IXMPS0133K1Z6 / 2020-2021 dated 23.06.2023 along with the consequential order in Form DRC 07 bearing a Ref.No. 1/6
ZD330623104762P dated 23.06.2023 and quash the same. For Petitioner : Mr.S.Kannan For Respondent : Mr.C.Harsha Raj, AGP (T) **********
ORDER
An order in original dated 23.06.2023 is challenged on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits. By asserting that the petitioner had entrusted GST compliances to an auditor and that such auditor was unwell, the present writ petition was filed.
2. Learned counsel for the petitioner submits that the confirmed tax proposal pertains to alleged mismatch between the petitioner's GSTR 3B returns and the auto populated GSTR 2A. He submits that the respondent committed an error in computing the difference by only relying on the returns for December 2020. If provided an 2/6
opportunity, he submits that the petitioner would be in a position to justify the ITC claim.
3. Mr.C.Harsha Raj, learned Additional Government Pleader, accepts notice for the respondent. He points out that a notice in Form GST ASMT 10 was issued on 09.11.2022, a show cause notice on 18.04.2023 and that three reminders were issued before the impugned order was issued.
4. On examining the impugned order, it is evident that the tax proposal pertains to a mismatch between the petitioner's GSTR 3B returns and the auto populated GSTR 2A. Such tax proposal was confirmed because the petitioner did not respond to any of the notices. Since the petitioner asserts that he could not respond on account of not being aware of proceedings, the interest of justice warrants that the petitioner be provided an opportunity to contest the tax demand on merits albeit by putting the petitioner on terms. On instructions, learned counsel for the petitioner agrees to remit 10% of 3/6
the disputed tax demand as a condition for remand. He makes a request that the sum of Rs.31,433/- paid by him on 12.06.2024 be adjusted and that he would make good the shortfall.
5. Therefore, impugned order dated 23.06.2023 is set aside on condition that the petitioner remits, in the aggregate, 10% of the disputed tax demand after taking into consideration any remittance previously made in that regard. Such remittance shall be made within two weeks from the date of receipt of a copy of this order. The petitioner is also permitted to submit a reply to the show cause notice during the said period. Upon receipt thereof and on being satisfied that 10% of the disputed tax demand, in the aggregate, was received, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of three months from the date of receipt of the petitioner's reply.
6. W.P.No.14640 of 2024 is disposed of on the above terms. No 4/6
costs. Consequently, W.M.P.Nos.15905 and 15906 of 2024 are closed. 13.06.2024 rna Index : Yes / No Internet : Yes / No To The Deputy State Tax Officer - II, Office of the Assistant Commissioner (ST), Udumalpet (North) Circle, Pollachi, Coimbatore.
SENTHILKUMAR RAMAMOORTHY,J rna 5/6
and W.M.P.Nos.15905 & 15906 of 2024 13.06.2024 6/6