Rajaa Offset Vs State Tax Officer (FAC) (Madras High Court)
Challenge to Assessment Order
The writ petition challenged the assessment order dated 24.05.2024 passed by the respondent. By consent of both parties, the Madras High Court took up the main writ petition for disposal at the admission stage.
Petitioner’s Contention
The petitioner submitted that the show cause notice in Form DRC-01 dated 27.12.2023 had been issued under Section 73 of the GST Act, 2017, whereas the impugned assessment order was passed under Section 74 of the Act. It was argued that if the respondent intended to proceed under Section 74, a notice under that provision was mandatory and had to satisfy the statutory requirements relating to fraud, wilful misstatement, suppression of facts to evade tax, or similar grounds. Since no notice under Section 74 had been issued, the assessment order was stated to be contrary to law and in violation of the principles of natural justice.
Respondent’s Stand
The learned Special Government Pleader confirmed that although the notice in Form DRC-01 had been issued, the petitioner had not submitted any reply, following which the impugned order was passed. The respondent requested the Court to pass appropriate orders.
High Court’s Findings
