Angels Family Stop Pvt Ltd v. State Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.07.2024
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.
No.18882 of 2024 and W.M.P.Nos.20729, 20730 & 20732 of 2024 Angels Family Stop Pvt Ltd Rep by its Director P.Sureshkumar Old No.11, New No.19 15th Main Road, Anna Nagar Chennai 600 040.
... Petitioner -vs1.The State Tax Officer, Amindakarai Assessment Circle, No.G-50, First Avenue, Anna Nagar (East) Chennai 600 102.
2.The Manager, Tamil Nadu Mercantile Bank Ltd AC-16, IInd Avenue, Anna Nagar West Chennai 600 040.
... Respondents 1/6
PRAYER: Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorari, to call for the impugned order of the first respondent passed in GSTIN: 33AAKCA7686F1ZF / 2017-2018 dated 28.12.2023 and quash the same. For Petitioner : Mr.N.Murali For Respondent 1 : Mr.V.Prashanth Kiran, GA (T) **********
ORDER
An order in original dated 28.12.2023 is challenged on the ground of breach of principles of natural justice. The petitioner states that its GST registration was cancelled on 13.01.2022. Consequently, it is stated that the petitioner was not monitoring the GST portal and did not know about the proceedings culminating in the impugned order because the show cause notice and other communications was uploaded on the "view additional notices and orders" tab in the GST 2/6
portal.
2. Learned counsel for the petitioner submits that the petitioner was unable to participate in proceedings on account of not being aware of the same. If provided an opportunity, he submits that the petitioner would be in a position to explain that only eligible Input Tax Credit was claimed. On instructions, he submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand.
3. Mr.V.Prashanth Kiran, learned Government Advocate, accepts notice for the respondent. He submits that principles of natural justice were complied with by issuing show cause notice dated 20.09.2023 and by offering a personal hearing to the petitioner.
4. On perusal of the impugned order, it is evident that the tax proposal was confirmed solely on the ground that the petitioner did 3/6
not file any objections. As a tax payer whose registration had been cancelled, the petitioner asserted that it did not know about these proceedings because all communications were uploaded on the GST portal. The facts and circumstances outlined above, justify reconsideration subject to putting the petitioner on terms.
5. Therefore, impugned order dated 28.12.2023 is set aside on condition that the petitioner remits 10% of the disputed tax demand, as agreed to, within fifteen days from the date of receipt of a copy of this order. Within the said period, the petitioner is permitted to submit a reply to the show cause notice. Upon receipt thereof and on being satisfied that 10% of the disputed tax demand 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 three months from the date of receipt of the petitioner's reply. In view of the assessment order being set aside, the bank attachment is raised.
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6. W.P.No.18882 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.Nos.20729, 20730 and 20732 of 2024 are closed.
18.07.2024 rna Index : Yes / No Internet : Yes / No To 1.The State Tax Officer, Amindakarai Assessment Circle, No.G-50, First Avenue, Anna Nagar (East) Chennai 600 102.
2.The Manager, Tamil Nadu Mercantile Bank Ltd AC-16, IInd Avenue, Anna Nagar West Chennai 600 040.
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SENTHILKUMAR RAMAMOORTHY,J rna and W.M.P.Nos.20729, 20730 & 20732 of 2024 18.07.2024 6/6