Chellamani and Co Vs Deputy Commercial Tax Officer (Madras High Court)
In the case of Chellamani and Co Vs Deputy Commercial Tax Officer, the Madras High Court quashed a GST assessment order due to the violation of the principles of natural justice. The petitioner, a company dealing in home appliances, failed to reply to show cause notices due to the medical condition of its partner, leading to the issuance of a tax demand order without a reply or personal hearing. The petitioner argued that they were not given a fair opportunity to present their case, as required by law. The court found that the assessment order was issued without affording the petitioner the chance to reply and without conducting a personal hearing. As a result, the court set aside the order and remanded the matter back to the tax officer for reconsideration, provided that the petitioner pays 10% of the disputed tax within four weeks. The tax officer must then offer a reasonable opportunity for the petitioner to respond, including a personal hearing, and reissue the assessment order based on merit within eight weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
1. This Writ Petition is filed for issuance of Writ of Certiorari to call for the records relating to the order dated 25.12.2023 in Ref.No.ZD331223191982B/2017-18 of the 1st Respondent and to quash the same.
