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Madras High CourtWP/33868/2024disposed of

M/S Ashwa Air Technologies v. The State Tax Officer

2024-11-20Honourable Mr Justice Mohammed Shaffiq6 pages

IN THE HIGHCOURT OF JUDICATURE AT MADRAS

DATED : 20.11.2024

CORAM

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P.No.36682 and 36683 of 2024 M/s.Ashwa Air Technologies, Represented by its proprietor D.Arumugam, No.169, Kamaraj Nagar, Hosur 635 126, Krishnagiri District.

... Petitioner Vs.

1. The State Tax Officer, Hosur (North)-I, Hosur 635 109.

... Respondent PRAYER : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, to call for the connected records pertaining to the impugned proceedings of the 1st respondent herein made in Ref:GSTIN:33AHRPA3166F1ZK dated 11.10.2023 and quash the same. For Petitioner : Mr.Manoharan S Sundaram For Respondents : Mr.TNC.Kaushik Additional Government Pleader 1/6

ORDER

The present writ petition is filed challenging the impugned order dated 11.10.2023, passed by the 1st respondent in Ref: GSTIN:33AHRPA3166F1ZK 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 engaged in selling of spare parts / machinery components and is registered under the GST Act. During the relevant period of 2017-18, the petitioner has filed the returns and paid appropriate taxes. However, on verification of the returns filed by the petitioner it was found that there is a discrepancy between GSTR 2A and 3B.

3. It is submitted by the learned counsel for the petitioner that an intimation in Form DRC01A was issued on 13.04.2023 followed by a notice in Form DRC-01 on 11.05.2023 and personal hearing on 26.05.2023. However, the petitioner had not responded to any of the above notices / intimation and the impugned order came to be passed. It is submitted by the learned counsel for the petitioner that neither the show cause notices nor the impugned order of 2/6

assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded in the "view additional notices" column in GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. It is 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 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.

5. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Additional Government Pleader appearing for the respondent does not have any serious objection.

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6. In view thereof, the impugned order dated 11.10.2023 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. 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 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. If the above deposit is not paid or objections are not filed within the stipulated period, i.e.

, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored. It was submitted that pursuant to the impugned order of assessment, recovery proceedings were initiated and bank accounts have been attached. In view of the order passed herein, the bank attachment shall be lifted forthwith on complying with the above condition i.e., payment of 25% of disputed taxes within a period of four weeks from the date of receipt of a copy of this order.

7. Accordingly, the Writ Petition stands disposed of. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed. 20.11.2024 NCC : Yes / No Index : Yes / No Internet : Yes spp To:

1. The State Tax Officer (Intelligence), Inspection - 5, Hosur Division, Hosur 635 109.

2. The Assistant Commissioner (ST) (FAC), Hosur (North) - I, Hosur 635 109.

MOHAMMED SHAFFIQ , J.

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and W.M.P.No.36682 and 36683 of 2024 20.11.2024 6/6