Sharp (Madurai) Security Management Services Private Limited v. The Assistant Commissioner (St)
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 30.07.2024
CORAM
THE HON'BLE MR.JUSTICE C.SARAVANAN and W.M.P.(MD) Nos.15389, 15392, 15396, 15398, 15399, 15400 & 15402 of 2024 Sharp (Madurai) Security Management Services Private Limited, Represented by its Managing Director, Mr.M.Natarajan, No.30, Flat No.10, First Floor, Murugan Illam, 3rd Street, Ashok Nagar Kochdai, Madurai - 16.
... Petitioner in all W.Ps.
Vs.
The Assistant Commissioner (ST), West Veli Street Circle, CT Complex, Dr.Thangaraj Salai, K.K.Nagar, Madurai - 20.
... Respondent in all W.Ps.
Common Prayer: Writ Petitions filed under Article 226 of Constitution of India for issuance of Writ of Certiorari to call for the records from the respondent in impugned orders in Detailed Proceedings in DRC 07 dated 02.03.2023 and the orders passed under Section 74 in Reference No.ZD330323018166U dated 03.03.2023 and consequential Summary of Page No. 1 of 8
Orders in Form GST DRC 07 in Reference No.ZD330323018166U dated 03.03.2023 passed for the F.Ys. 2020-2021, 2022-2023, 2021-2022 respectively and quash the same.
For Petitioner in all W.Ps.
: Mr.J.Narayanasamy for Mr.B.Sivaraman For Respondent in all W.Ps.
: Mr.J.K.Jayaselan Government Advocate ***** C O M M O N O R D E R By this common order, all these Writ Petitions are being disposed of.
2. In these Writ Petitions, the petitioner has challenged the following Assessment Orders:- Table No.1 Sl.
No.
W.P.(MD) No.
Assessment Year Date of the impugned order Amount 17966/2024 2020-2021 02.03.2023 Rs.1,56,04,500/- 17967/2024 2022-2023 02.03.2023 Rs.42,58,702/- 17897/2024 2021-2022 02.03.2023 Rs.1,35,35,789/- Page No. 2 of 8
Table No.1A A.Y. 2020-2021 - [W.P.(MD) No.17966/2024] Description SGST (Rs.) CGST (Rs.) IGST (Rs.) Total Tax 8,20,318 33,46,781 41,72,266 Interest 15,99,229 16,62,772 32,63,989 Penalty (100%) - as per Section 74(a) 40,79,649 40,79,649 81,68,245 TOTAL 64,99,196 90,89,202 16,102 1,56,04,500 Table No.1B A.Y. 2022-2023 - [W.P.(MD) No.17967/2024] Description SGST (Rs.) CGST (Rs.) IGST (Rs.) Total Tax 10,07,006 10,07,006 20,14,012 Interest 1,15,339 1,15,339 2,30,678 Penalty (100%) - as per Section 74(a) 10,07,006 10,07,006 20,14,012 TOTAL 21,29,351 21,29,351 42,58,702 Table No.1C A.Y. 2021-2022 - [W.P.(MD) No.17897/2024] Description SGST (Rs.) CGST (Rs.) IGST (Rs.) Total Tax 30,31,043 30,31,043 5,670 60,67,756 Interest 6,99,301 6,99,301 1,675 14,00,277 Penalty (100%) - as per Section 74(a) 30,31,043 30,31,043 5,670 60,67,756 TOTAL 67,61,387 67,61,387 13,015 1,35,35,789 Page No. 3 of 8
3. The impugned orders have been passed after the petitioner has been served with Show Cause Notices in DRC 01. Prior to the Notices in DRC 01, the petitioner was issued with Notices in DRC 01A which were replied by the petitioner. The petitioner appears to be engaged in providing security services. It appears that the petitioner was a defaulter of tax and had given an undertaking to pay the tax for the respective Assessment Years after being served with Notices in DRC 01A. After the petitioner had given the aforesaid representation, the petitioner had filed reply to the Notices issued for the respective Assessment Years in DRC
01. However, the Department has recovered the amounts for the Assessment Years 2020-2021 to 2022-2023 as detailed in the above Table.
4. As far as the Assessment Year 2021-2022 is concerned, a sum of Rs.17,92,711/- has been recovered from the petitioner as against the total tax of Rs.60,67,756/-. The demand towards penalty and interest has not been paid by the petitioner. The case of the petitioner is that the statements that were obtained from the petitioner were coercive in nature and therefore, the petitioner may be given an opportunity to explain the case.
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5. It is submitted that no prejudice will be caused to the respondent as the entire tax lability, as far as the Assessment Years 2020-2021 and 2022-2023 are concerned, has been recovered in excess and partly adjusted towards the interest and penalty components. As far as the Assessment Year 2021-2022 is concerned, it is submitted that the petitioner had paid more than 25% of the tax due demanded in the impugned order.
6. This Court, under similar circumstances and after considering the situation, permitted the assessee to file a reply by quashing the impugned orders and treating them as an addendum to the show cause notices.
7. In this case, admittedly, the entire tax lability for the Assessment Years 2020-2021 and 2022-2023 has been recovered and more than 25% of the tax has been recovered for the Assessment Year 2021-2022. Therefore, I see no impediment to granting the petitioner one more opportunity to file a detailed reply.
8. Under similar circumstances, the impugned orders are quashed and cases are remitted back to the respondent to pass fresh orders on Page No. 5 of 8
merits and in accordance with law. The impugned orders which stand quashed shall be treated as Addendum to the respective Notices in DRC 01 which were not replied by the petitioner earlier. The petitioner shall file separate replies for each of the Assessment Years within a period of 8 weeks from today.
9. The respondent shall proceed to pass final orders on merits and in accordance with law within a period of 6 months from today. Since the matter is being remitted back, the order of attaching the petitioner's Bank Account shall stand lifted. The attachment of the properties shall continue for a period of 3 months from today and will subject to the final orders to be passed.
10. These Writ Petitions stand allowed with the above observations. No costs. Consequently connected Miscellaneous Petitions are closed. 30.07.2024 Index: Yes/ No Speaking Order / Non-Speaking Order JEN Page No. 6 of 8
Copy To:
The Assistant Commissioner (ST), West Veli Street Circle, CT Complex, Dr.Thangaraj Salai, K.K.Nagar, Madurai - 20.
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C.SARAVANAN , J.
JEN and W.M.P.(MD) Nos.15389, 15392, 15396, 15398, 15399, 15400 & 15402 of 2024 30.07.2024 Page No. 8 of 8