National Maligai Agencies v. The State Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 21.10.2024 Coram The Honourable Mr.Justice Krishnan Ramasamy and W.M.P.Nos.33453 & 33454 of 2024 National Maligai Agencies, rep. by its Proprietor, Mr.Abdul Khader Sheik Dawood.
...Petitioner
Vs.
The State Tax Officer J.J.Nagar Assessment Circle, Room No.333, 3rd Floor, Nandanam, Chennai - 600 035.
...Respondent
Prayer Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari to call for records of the respondent in Ref.No.ZD3308242807634/2019-20 dated 29.08.2024 and to quash the same as arbitrary.
For Petitioner : Mr.S.Ramanan For Respondent : Mrs.K.Vasanthamala Government Advocate (T) 1/6
Order With consent, the main Writ Petition is taken up for final disposal at the stage of admission itself.
2. Mr.S.Ramanan, learned counsel for the petitioner would submit that the respondent has issued a show cause notice in Form DRC-01, dated 21.05.2024 to which, the petitioner filed a reply on in Form GST DRC-06 dated 20.06.2024, however, the respondent, without affording any opportunity of personal hearing to the petitioner, passed the impugned order, thereby, confirming the proposals contained in the show cause notice. 2.1 The learned counsel would submit that in terms of Section 75
(4) of the CGST Act, it is mandatory to provide an opportunity of hearing to the assessee before passing any adverse order, whereas, in the present case, no such opportunity was granted to the petitioner before confirming the demand made in the show cause notice, therefore, the impugned order is not only against the provisions contemplated under the Section 75 (4) of CGST Act but also suffers from violation of principles of natural justice, as the 2/6
petitioner has not been heard before passing such order. Hence, the learned counsel prayed to set aside the impugned order.
3. Mrs.K.Vasanthamala, learned Government Advocate (T), who takes notice for the respondent would submit that personal hearing opportunity was afforded to the petitioner subsequent to the receipt of the reply from the petitioner to the show cause notice, however, the petitioner failed to appear, therefore, submitted that appropriate orders may be passed.
4. I have given due considerations to the submissions made on either side and perused the materials available on record.
5. The petitioner is an assessee on the files of the respondent under the provisions of the CGST/SGST Act. The respondent issued a show cause notice in Form DRC-01 dated 21.05.2024; that the petitioner, upon receipt of such show cause notice, filed reply dated in Form GST DRC-06 dated 20.06.2024, however, the respondent, without affording any opportunity of personal hearing to the petitioner, passed the impugned order, thereby, 3/6
confirming the proposals contained in the show cause notice.
6. In terms of Section 75 (4) of the CGST Act, it is mandatory on the part of the respondent to provide an opportunity of hearing to the assessee before passing any adverse order, whereas, in the present case, no such opportunity was granted to the petitioner before confirming the demand made in the show cause notice, therefore, the impugned order is not only against the provisions contemplated under the Section 75 (4) of CGST Act but also suffers from violation of principles of natural justice. Hence, this Court is inclined to set aside the impugned order.
7. Accordingly, this Court passes the following orders/directions:- i) The impugned order dated 29.08.2024 is set aside. ii) Consequently, the matter is remanded to the respondent for fresh consideration, in which case, the respondent is directed to issue a clear 14 days notice, thereby, affording an opportunity of personal hearing to the petitioner and after considering the reply that has already been filed by the petitioner and hearing the petitioner in full, shall decide the matter in 4/6
accordance with law.
8. In the result, the Writ Petition is allowed on the aforesaid terms. No costs. Consequently, connected Miscellaneous Petitions are closed. 21.10.2024 sd Index : yes/no To The State Tax Officer J.J.Nagar Assessment Circle, Room No.333, 3rd Floor, Nandanam, Chennai - 600 035.
Krishnan Ramasamy,J., sd 5/6
21.10.2024 6/6