Gaea Engineers And Contractors Private Limited v. State Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P.No.34483 of 2024 Gaea Engineers and Contractors Private Limited, Rep. by its Director, K.S.Shashidhar, No.18/17, Bharathi Street, Bharathi Nagar, Guindy, Chennai 600 032.
.. Petitioner Vs.
State Tax Officer, Alandur Assessment Circle, Integrated Commercial Taxes and Reg. Department, South Tower, 2nd Floor, Room No.352, Nandanam, Chennai 600 035.
.. Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, to call for the impugned order of the respondent passed in GSTIN:33AADCG8772D1ZN/2018-19 dated 30.04.2024 and quash the same.
For Petitioner : Mr.N.Murali For Respondents : Mr.V.Prashanth Kiran Government Advocate
ORDER
The present writ petition has been filed challenging the impugned order passed by the respondent in GSTIN:33AADCG8772D1ZN/201819 dated 30.04.2024, on the premise that the same is made in violation of principles of natural justice.
2. It is submitted by the learned counsel for the petitioner that the petitioner is a works contractor and is registered under the GST Act. During the relevant period of 2018-19, the petitioner has filed the returns and paid appropriate taxes. However, on verification of the returns the following discrepancies were noticed:
a) Under declaration of output tax.
b) Excess claim of Input Tax Credit.
c) Interest under Section 50(1) for late submission of GSTR 3B.
3. It is submitted by the learned Counsel for the petitioner that an intimation in DRC 01 was issued to the petitioner on 27.12.2023 followed by three reminders viz., 05.02.2024, 17.02.2024 and 13.03.2024. In response, the petitioner filed its reply dated 11.03.2024. However, the same was found to be unacceptable inasmuch as it is not supported by documentary evidence. Thus, the impugned order came to be passed on 30.04.2024 confirming the proposal. It is further submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he would be able to explain the alleged discrepancies.
4. The learned counsel for the petitioner would then place reliance upon the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that they may be granted one final opportunity
before the adjudicating authority to put forth their objections to the proposal to which, the learned Government Advocate appearing for the respondent does not have any serious objection
5. By consent of both parties, the writ petition stands disposed of on the following terms:
a) The impugned order dated 30.04.2024 is set aside. b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order.
c) If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.
d) The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 25% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance of the above direction, shall be completed within a period of four weeks from the date of receipt of copy of this order.
e) Failure to comply with the above condition viz., payment of 25% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order.
f) If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 25 % of the disputed taxes. g) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the
respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 25% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
6. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.
07.01.2025 Speaking (or) Non Speaking Order Index:Yes/No spp To:
State Tax Officer, Alandur Assessment Circle, Integrated Commercial Taxes and Reg. Department, South Tower, 2nd Floor, Room No.352, Nandanam, Chennai 600 035.
MOHAMMED SHAFFIQ, J.
spp and W.M.P.No.34483 of 2024 07.01.2025