Vallhabha Milk Products Private Limited v. The Commercial Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 14.08.2024 Coram The Hon'ble Mr.Justice Krishnan Ramasamy W.P.No.23065 of 2024 and W.M.P.Nos.25159 & 25160 of 2024 Vallhabha Milk Products Private Limited, Represented by its Director Mr.Veeravalli Subbaiah Plot No.3, Mutha Royal Nagar, Madhavaram Village, Chennai 600 060.
...Petitioner
Vs.
The Commercial Tax Officer, Madhavaram : Tiruvallur :
Room No.105, First Floor, Integrated Commercial Taxes Building, Wall Tax Road, Chennai-600 003.
... Respondent Prayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records the Respondent in DRC-07 Reference Number ZD331223189265F/2017-18 dated 23.12.2023 and quash the same as arbitrary, illegal.
For Petitioner : M/s.V.Vijayalakshmi For Respondent : Ms.Amirtapoonkodi Dinakaran, Government Advocate (T) 1/6
ORDER
This Writ Petition has been filed by the petitioner challenging the order dated 23.12.2023 passed by the respondent for the Assessment Year 2017-2018.
2. Ms.Amirta Poonkodi Dinakaran, learned Government Advocate (Tax), takes notice on behalf of the respondent.
3. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.
4. Alleging that there is a mismatch of tax liability filed by the petitioner for the financial year 2017-2018, the respondent passed an impugned order, dated 23.12.2023, demanding the payment of the differential amount in respect of the impugned assessment period.
5. The learned counsel for the petitioner submitted that the respondent had issued a notice in Form DRC-01 on 21.09.2023 and also the reminder notice dated 18.11.2023 raised on the petitioner in the GST common portal, as the petitioner was unable to file their reply for the reason that the 2/6
accountant, who had an access to portal as well who knows the password, failed to bring them about the show cause notices issued by the department. Further, he submitted that, if an opportunity is provided, the petitioner would be able to substantiate his case and also he agrees to make a payment of 10% of the disputed tax demand in respect of the impugned assessment period.
6. Ms.Amirta Poonkodi Dinakaran, learned Government Advocate appearing for the respondent would submit that subject to the deposit of 10% of the disputed tax by the petitioner in respect of the impugned assessment period, this Court can consider and pass appropriate orders.
7. Heard the learned counsel for the petitioner as well as the learned Government Advocate for the respondent and perused the materials available on record.
8. 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 3/6
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 order came to be passed without affording any opportunity of personal hearing to the petitioner to establish its case, thereby violating the principles of natural justice and that it is just and necessary to provide an opportunity to the petitioner to establish their case on merits and in accordance with law.
9. For the reasons stated above, this Court is inclined to set aside the impugned order dated 23.12.2023 passed by the respondent with the following directions:- (i) The order impugned herein is set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay a 10% of the disputed tax in respect of the impugned assessment year 2017-2018 to the respondent within a period of four weeks from the date of receipt of a copy of this order; and the setting aside of the impugned order will take effect from the date of payment of the said amount.
(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of two weeks thereafter.
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(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice by fixing the date of personal hearing to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.
10. With the above directions, this writ petition is disposed of. There is no order as to costs. Consequently, the connected miscellaneous petitions are closed.
14.08.2024 Speaking/Non-speaking order Index : Yes / No jd To The Commercial Tax Officer, Madhavaram : Tiruvallur :
Room No.105, First Floor, Integrated Commercial Taxes Building, Wall Tax Road, Chennai-600 003.
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Krishnan Ramasamy,J., jd 14.08.2024 6/6