Case Law Details
Tvl.Sri Padma Constructions Vs Deputy Commercial Tax Officer (Madras High Court)
Conclusion: Assessee’s petition against the under declaration of ineligible Input Tax Credit ( ITC ) would be heard when assessee would deposit 10% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order.
Held: Assessee claimed to have filed GST returns and paid appropriate taxes for the relevant period. However, discrepancies were noted between the details furnished in GSTR-01, GSTR-2A, and GSTR-3B returns, stating under-declared ineligible ITC. Subsequently, the GST authorities issued an intimation in Form DRC-01 along with multiple personal hearing dates, none of which assessee attended. According to assessee, neither the show cause notices nor the impugned order was served through Registered Post Acknowledgement Due (RPAD). Instead, they were uploaded under the “view additional notices and orders” section of the GST portal, leaving assessee unaware of the proceedings. Assessee requested a chance to explain the discrepancies and cited a similar judgment by the High Court, which remanded a matter upon payment of 10% of the disputed tax. It was held that assessee should deposit 10% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment should be treated as show cause notice and assessee should submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections were filed, the same should be considered by the respondent and orders should be passed in accordance with law after affording a reasonable opportunity of hearing to assessee.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition is filed challenging the impugned order in Ref.No.ZD330824153859V dated 19.08.2024, passed by the respondent on the premise that the same was made in violation of principles of natural justice.
2. It is submitted by the learned counsel for the petitioner that the petitioner is a registered dealer under the GST Act. During the relevant period of 2019-20, the petitioner has filed the returns and paid appropriate taxes. However, on examination of the information furnished in this return under various heads and also the information furnished in GSTR-01, GSTR-2A, GSTR-3B, it was found that there was a discrepancy viz., under declaration of ineligible ITC.
3. It is submitted by the learned counsel for the petitioner that an intimation in Form DRC01 was issued on 22.05.2024 with personal hearing on 06.06.2024. Thereafter, two more personal hearings was granted to the petitioner viz., 15.07.2024 and 09.08.2024. However, the petitioner had not responded to any of the above notices / intimation, the impugned order was thus passed confirming the proposal. Neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under “view additional notices and orders” column of the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he would be able to explain the alleged discrepancy.
4. The learned counsel for the petitioner would 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.
5. It was further submitted that the petitioner is ready and willing to pay 10% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Special Government Pleader appearing for the respondent does not have any serious objection.
6. In view thereof, the impugned order dated 19.08.2024 is set aside and the petitioner shall deposit 10% of the disputed tax within a period of four 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 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. If the above deposit is not paid or objections are not filed within the stipulated period, i.e., four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
7. Accordingly, the Writ Petition stands disposed of. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
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