Tvlsri Krishna Distributors v. The Deputy Commercial Tax Officer Ii (St)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :03.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P. No.39648 of 2024 and W.M.P.Nos.42936 and 42938 of 2024 Tvl.Sri Krishna Distributors, Rep. By its partner Rameshwar Seervi, Old S.No.23/1A1A, New S.No.23/22 Part & S.No.23/21, Seevaram Village Plot No.4 and Plot No.5, Sholinganallur Taluk, Perungudi, Chenni 600 096. ... Petitioner Vs.
The Deputy Commercial Tax Officer -II (ST), Sholinganallur Assessment Circle, 2nd Floor, Room No.241, The Integrated Building for Commercial Taxes and Registration Department, (South Tower), Nandanam, Chennai 600 035.
... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari to call for the records of the respondent in order dated 16.08.2024 in GSTN:33ADSFS9473N1ZZ/2019-20 and quash the same as illegal, arbitrary and in violation of principle of natural justice. For Petitioner : M/s.C.Rekhakumari For Respondent : Mrs.Vasanthamala, Government Advocate.
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ORDER
The present writ petition is filed challenging the impugned order passed by the respondent dated 16.08.2024 relating to the assessment year 2019-20. 2.The petitioner is a dealer in sanitary hardware items and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2019-20, the petitioner filed its returns and paid the appropriate taxes. However, during the scrutiny of the petitioner's monthly return, the following discrepancies were noticed viz., i. Excess Claim of Input Tax Credit ii. Under declaration of Ineligible ITC 2.1 Pursuant thereto, a Show Cause Notice in Form GST DRC-01 was issued on 25.05.2024, followed by reminders on 19.07.2024 and 10.08.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing.
Hence, the impugned order came to be passed, confirming the proposal. 3.
the initiated proceedings and was thus unable to participate in the adjudication proceedings.
4. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. The learned counsel for the petitioner would then place reliance upon the recent judgment of this Court in the case of Sree Manoj International Vs. Deputy State Tax Officer in W.P.No.10977 of 2024 dated 25.04.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 10% of the disputed taxes. It was further submitted that the petitioner is ready and willing to pay 10% 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. It is submitted that there is bank attachment and the same may be lifted to which the learned 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 16.08.2024 is set aside. b) The petitioner shall deposit 10% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks 3/7
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 10% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 10% 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 10% 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 with 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 10% 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 10% of the disputed taxes. g) On complying with the above condition, the impugned order of assessment 4/7
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., 10% 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 petitions are closed.
03.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No shk To:
The Deputy Commercial Tax Officer -II (ST), Sholinganallur Assessment Circle, 2nd Floor, Room No.241, The Integrated Building for Commercial Taxes and 5/7
Registration Department, (South Tower), Nandanam, Chennai 600 035.
MOHAMMED SHAFFIQ, J.
shk 6/7
W.P. No.39648 of 2024 and W.M.P.Nos.42936 and 42938 of 2024 03.01.2025 7/7