A & A Builders and Promoters Vs State Tax Officer (Madras High Court)
Madras High Court held that issuance of two different orders for same Assessment Year is passed without application of mind and in violation of the principles of natural justice. Thus, order set aside and matter remanded back.
Facts- The petitioner registered the partnership Company with the respondent and obtained a Registration Certificate in the year 2017. The respondent had erroneously issued two different orders for the same A.Y. 2017-2018 dated 29.12.2023, along with the previous order dated 28.12.2023.
On 12.09.2023, a notice of Audit Observation was issued by the respondent for F.Y. 2017-2018 stating the total amount due as Rs.50,65,982/-. Again, on 14.09.2023, within a short span of 9 days, the respondent levied a penalty amount of Rs.5,00,000/-without issuing any notice to the petitioner. To their shock and surprise, on 25.09.2023, a show cause notice was issued in Form GST DRC 01 by the respondent stating that a sum of Rs.76,67,884/- was to be paid for F.Y. 2017-2018.
Conclusion- Held that the two impugned orders came to be passed without application of mind and in violation of the principles of natural justice. Thus, the orders dated 28.12.2023 and 29.12.2023 impugned herein are set aside and the matter is remanded to the respondent for fresh consideration on condition that the petitioner shall pay a 10% of disputed tax to the respondent within a period of four weeks from the date of receipt of a copy of this order and the setting aside of the impugned order will take effect from the date of payment of the said amount.
