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Madras High CourtWP/39070/2024disposed of

Sri Rajathi Stores v. The Assistant Commissioner (St)

2025-01-03Honourable Mr Justice Mohammed Shaffiq7 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 03.01.2025

CORAM

THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P.No.39070 of 2024 and W.M.P.Nos.42322 and 42323 of 2024 Sri Rajathi Stores, Represented by its Proprietor, R.Ramkumar ..Petitioner Vs.

The Assistant Commissioner (ST), Alagapuram Assessment Circle, Salem ..Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying to issue Writ of Certiorari, calling for the records on the files of the respondent herein in GSTIN/33AFAPR0565A1Z1/2018-19 in Order Reference No.ZD330723130365N dated 29.07.2023 and quash the same and pass orders. For Petitioner : Ms.S.Vinupriya For Respondent : Mr.G.Nanmaran Special Government Pleader 1/8

ORDER

The present Writ Petition is filed challenging the impugned order passed by the respondent dated 29.07.2023 relating to the assessment year 2018-19.

2. The petitioner is engaged in the business of groundnut oil and is a registered dealer under Goods and Services Act, 2017. During the relevant period, the petitioner had filed its return and paid appropriate taxes. However, on verification of the monthly returns, it was found that there was mismatch between GSTR -3B and GSTR-2A.

2.1. Pursuant thereto, a notice in DRC-01A was issued to the petitioner on 28.02.2023, followed by a show cause notice in DRC 01 on 08.06.2023. Further, personal hearing was offered on 19.07.2023. However, the petitioner had neither filed its reply nor paid the appropriate taxes. Hence, the impugned order came to be passed, confirming the proposal. Aggrieved by the same, the petitioner had filed an appeal and the same was rejected on the ground of barred by limitation. 2/8

3. 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. 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. It is further submitted that subsequent to the passing of the impugned order, the petitioner had filed an appeal along with 10% pre-deposit and his only request is that the same may be adjusted towards 25% of the disputed tax, to which the learned Government Advocate appearing for the respondent does not have any serious objection, while seeking liberty to verify the correctness of the statement relating to remittance made by the petitioner.

4. By consent of parties, the writ petition stands disposed of on the following terms:

a) The impugned order dated 29.07.2023 is set aside b) The petitioner shall deposit 25% of the disputed taxes as admitted by the 3/8

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. 4/8

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.

5. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.

03.01.2025 Speaking (or) Non Speaking Order 5/8

mrn To The Assistant Commissioner (ST), Alagapuram Assessment Circle, Salem 6/8

MOHAMMED SHAFFIQ, J.

mrn W.P.No.39070 of 2024 7/8