Tvl.Sri Vigneshwara Batteries Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court restored the matter back directing petitioner to deposit 25% of the disputed tax since petitioner failed to comply during adjudication proceeding. Accordingly, assessment order restored back.
Facts- The present writ petition is filed challenging the impugned order passed by the respondent dated 12.01.2024 relating to the assessment year 2018-19.
The petitioner is engaged in the business of trading activities in batteries and is a registered dealer under the Goods and Services Act, 2017. During the scrutiny of the petitioner’s return, it was found that there was excess claim of Input Tax Credit over and above that of the tax paid under Reverse Charge Mechanism. Subsequently, a Show Cause Notice was issued to the petitioner in Form DRC-01 on 31.10.2023. A personal hearing was offered on 15.11.2023. 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. Being aggrieved, the present appeal is filed.
Conclusion- Held that in view thereof, the impugned order is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four (4) weeks from the date of receipt of a copy of this order. 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 respondents and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. If the above deposit is not paid or objections are not filed within the stipulated period, i.e., four weeks and four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
