Gaea Engineers And Contractors Private Limited v. Assistant Commissioner St

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 28.10.2024 Coram The Hon'ble Mr.Justice Krishnan Ramasamy W.P.No.32007 of 2024 and W.M.P.Nos.34750 and 34751 of 2024 Gaea Engineers and Contractors Private Limited Represented byits Director, K S Shashidhar No.18/17 Bharathi Street Bharathi Nagar Guindy, Chennai - 600032.

...Petitioner

Vs.

Assistant Commissioner ST Alandur Assessment Circle Integrated Commercial Taxes and Reg. Department South Tower, 2nd Floor, Room No.352 Nandanam, Chennai-600035.

... Respondent Prayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, to call for the impugned order of the Respondent passed in GSTIN:33AADCG8772D1ZN/2017-2018 dated For Petitioner : Mr.N.Murali For Respondent : Mr.T.N.C.Kaushik Additional Government Pleader (Taxes) 1/8

ORDER

This Writ Petition has been filed to call for the records of the Respondent dated 27.12.2023 and to quash the same.

2. Mr.T.N.C.Kaushik, learned Additional 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. The learned counsel for the petitioner submits that show cause notice dated 25.09.2024 followed by reminders dated 23.11.2023, 02.12.2023 and 06.12.2023 were issued to the Petitioner and since it was uploaded in the "View additional Notices and Orders" tab, the Petitioner was not aware of the same and hence failed to file reply. Under such circumstances, the Respondent passed the impugned assessment order dated 27.12.2023 demanding tax along with int erest and penalty for the Assessment Year 2017-18 and the same was also uploaded in the "View additional Notices and Orders" tab in GST portal. The Petitioner came to know of the said order only during September 2024 2/8

through their customer.

5. Further, she would submit that impugned assessment order came to be passed without affording an opportunity of hearing to the Petitioner and therefore the same is in violation of principles of natural justice and therefore prays to set aside the same.

6. The learned Additional Government Pleader (Taxes) appearing for the Respondent submitted that the Show Cause Notice followed by reminder notices were issued to the Petitioner by uploading the same in the GST Portal, but the Petitioner failed to submit its reply and therefore impugned assessment order came be passed. He therefore prayed for appropriate orders.

7. Heard the learned counsel for the petitioner and the learned Additional Government Pleader (Taxes) for the Respondent and also perused the materials available on record.

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8. In the present case, since the Show Cause Notice along with reminder notices were uploaded in the GST Portal, the Petitioner was not aware of the said notices issued by the Respondent and hence could not file reply.

9. It is settled law that violation of principles of natural justice is a failure of due process. If any order is passed against the petitioner with demand, that order has to be passed after giving an opportunity of personal hearing to the petitioner otherwise, it will amount to depriving the interest of the petitioner and the same amounts to violation of principles of natural justice.

10. In the case on hand, the impugned order was passed without giving opportunity of personal hearing to the Petitioner. Hence, this Court is of the view that the impugned order passed in violation of principles of natural justice and it is just and necessary to provide an opportunity to the petitioner to establish their case on merits. In such view of the matter, this Court is inclined to set aside the impugned assessment order dated 28.12.2023 passed by the Respondent. Accordingly, this Court passes the following order:- (i) The order impugned herein is set aside and the matter is remanded to the Respondent for fresh consideration 4/8

on condition that the Petitioner shall pay 10% of disputed tax 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.

(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.

11. Accordingly, the writ petition is disposed of. There is no order as to costs. Consequently, the connected miscellaneous petitions are closed. 28.10.2024 Speaking/Non-speaking order Index : Yes / No arr 5/8

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To Assistant Commissioner ST Alandur Assessment Circle Integrated Commercial Taxes and Reg. Department South Tower, 2nd Floor, Room No.352 Nandanam, Chennai-600035.

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Krishnan Ramasamy,J., arr 28.10.2024 8/8