M K Constructions v. Deputy State Tax Officer,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 19.11.2024 Coram:

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ and W.M.P.Nos.37831 & 37832 of 2024 M/s.M.K.Constructions, Represented by its Managing Partner M.Karunanidhi 1/118, K.Mottur Village, Kallapadi Post, Gudiyatham - 632 602.

...Petitioner

Versus

Deputy State Tax Officer, Gudiyatham (East) Assessment Circle, Gudiyatham.

...Respondent

Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorari calling for the records culminating into order dated 08.04.2024 bearing GSTIN: 33AALFM5754GIZ5/April 2022 - September 2022 and quash the same. For Petitioner :

Mr.S.Srisankar For Respondent :

Ms.Amirta Poonkodi Dinakaran, Government Advocate (Tax) 1/6

ORDER

Ms.Amirta Poonkodi Dinakaran, learned Government Advocate (Tax) takes notice for the respondent.

2. With the consent of both sides, this writ petition is taken up for final disposal at the admission stage itself.

3. The present writ petition has been filed by the petitioner challenging the assessment order bearing GSTIN:

33AALFM5754GIZ5/April 2022 - September 2022 dated 08.04.2024 passed by the respondent.

4. The learned counsel for the petitioner submitted that the petitioner is engaged in the business of construction of roads, bridges, drainage, tunnels and terminals. The petitioner has been duly filing their returns and paying all the statutory taxes. However, on scrutinizing the returns filed by the petitioner, it was found that there is a mismatch of tax liability between GSTR-7 and GSTR-3B returns for the Financial Year 2022-23. Hence, the respondent has issued a Scrutiny Notice ASMT-10 dated 07.02.2023, 2/6

followed by a Show Cause Notice in Form DRC-01 dated 09.10.2023 and Reminder Notices dated 23.02.2023, 28.03.2023 & 03.04.2024. Thereafter, the respondent has passed the impugned order of assessment. Both the show cause notice and the impugned assessment order have not been served to the petitioner either by tendering or by way of Registered Post, instead, the same were uploaded in the "View Additional Notices" tab of the GST portal. Hence, the petitioner was unable to reply to the show cause notice and also, unable to participate in the adjudication proceedings. It is also submitted by the learned counsel that if the petitioner is provided with an opportunity, the petitioner would be able to explain the alleged discrepancies between GSTR-7 and GSTR-3B.

5. The learned counsel for the petitioner has placed reliance on the order passed by 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 in similar circumstances, this Court has remanded the matter back to the respondent, subject to the payment of 25% of the disputed tax by the petitioner therein. 3/6

6. The learned counsel for the petitioner further submitted that the petitioner is ready and willing to pay 25% of the disputed tax amount and that one final opportunity may be granted to the petitioner to put forth their objections to the proposal before the Adjudicating Authority, to which, the learned Government Advocate (Tax) appearing for the respondent does not have any serious objection.

7. In view thereof, the impugned assessment order dated 08.04.2024 passed by the respondent is set aside on condition that the petitioner shall pay 25% of the disputed tax, within a period of four weeks from the date of receipt of a copy of this order. On complying the said condition, the impugned assessment order shall be treated as Show Cause Notice. The petitioner is directed to file their objections along with supporting documents/material, if any, within a period of four weeks from the date of receipt of a copy of this order. On filing of such objections by the petitioner, the respondent shall consider the same and pass appropriate orders on merits and in accordance with law, after affording a reasonable opportunity of hearing to the petitioner, as expeditiously as possible. If the deposit is not paid or objections are not filed by the petitioner within the stipulated time as 4/6

stated above, the impugned assessment order shall stand restored.

8. With the above directions, this writ petition is disposed of. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.

19.11.2024 mrr Index : Yes/No Speaking Order (or) Non-Speaking Order To Deputy State Tax Officer, Gudiyatham (East) Assessment Circle, Gudiyatham.

MOHAMMED SHAFFIQ, J.

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mrr 19.11.2024 6/6