Msv Steel v. The Assistant Commissione Of Gst(St)

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 04.09.2024 Coram The Hon'ble Mr.Justice Krishnan Ramasamy W.P.No.25222 of 2024 & W.M.P.Nos.27546 & 27548 of 2024 M/s.M.S.V.Steel, Rep. by S.Dhanaseelan, Proprietor, Shop No.1,2,3, Arumbu Complex, Cuddalore Main Road, Railadi, Kurinjipadi & Taluk-607 302, Cuddalore District.

...Petitioner

-VsThe Assistant Commissioner of GST (ST), Cuddalore Taluk Assessment Circle, Commercial Tax Office Complex, Sub-Jail Road, Cuddalore-607 001.

... 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 of the case relating to the impugned order ZD331223184041Y/2017-18 dated 23.12.2023 of the respondent and to quash the same.

For Petitioner : Mr.J.Shankarraman For Respondent : Mr.G.Nanmaran, Special Government Pleader (Tax) 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 financial year 20172018.

2. Mr.G.Nanmaran, learned Special Government Pleader (Taxes), takes notice on behalf of the respondent.

3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of 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 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 notices in Form DRC-01A, DRC-01 and ASMT-10 raised on the petitioner in the GST common portal under "Other notices column", as the petitioner was unaware of 2/6

the same, he failed to respond the said notices. He submitted that even an impugned order was uploaded in the GST portal and the physical version of such order was not served on the petitioner. Further, he would submit that the petitioner has already been paid 40% of the disputed tax through Electronic Credit Ledger in respect of the impugned assessment period. Hence, he sought for appropriate orders from this Court for affording an opportunity to the petitioner to present the case by way of filing a suitable reply and participate in the proceedings.

6. Mr.G.Nanmaran, learned Special Government Pleader (Taxes) appearing for the respondent submitted that subject to the verification of the payment of 40% of the disputed tax, this Court may remand the matter to the Authority concerned for passing appropriate orders.

7. Heard the learned counsel for the petitioner as well as the learned Special Government Pleader for the respondent and perused the materials available on record.

8. Considering the above submissions made by the learned counsel 3/6

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 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 in respect of the impugned assessment period. Since the petitioner has already been paid 40% of the disputed tax, this Court is not inclined to impose any further condition.

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(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of two weeks from the date of receipt of a copy of this order.

(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 for 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. Accordingly, the Writ Petition is disposed of. There is no order as to costs. Consequently, the connected miscellaneous petitions are closed. 04.09.2024 Speaking/Non-speaking order Index : Yes / No jd To The Assistant Commissioner of GST (ST), Cuddalore Taluk Assessment Circle, Commercial Tax Office Complex, Sub-Jail Road, Cuddalore-607 001.

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Krishnan Ramasamy,J., jd 04.09.2024 6/6