Case Law Details
A K M Balu Vs Assistant Commissioner (ST) (Madras High Court)
In A K M Balu Vs Assistant Commissioner (ST), the petitioner challenged the GST assessment order for the year 2019-2020, issued by the respondent on 30.05.2024. The petitioner contended that the discrepancies in GSTR-9 returns, cited in the Show Cause Notice (Form DRC-01A) dated 16.05.2024, were addressed in his detailed reply. He argued that the proceedings under Section 73 of the Tamil Nadu Goods and Services Tax Act (TNGST Act), 2017, were initiated without prior verification under Section 61 of the Act. Despite the petitioner’s objections, the respondent proceeded to issue the impugned order without considering the reply. The court acknowledged the petitioner’s right to a fair opportunity to present his case and set aside the impugned order. It directed the petitioner to file an additional reply within three weeks, including all relevant documents. The respondent must reconsider the matter, provide a personal hearing, and pass a fresh order based on merit, without being influenced by previous proceedings. The writ petition was disposed of with no costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition has been filed by the petitioner challenging the impugned order dated 30.05.2024 passed by the respondent for the assessment year 2019-2020.
2. Mr. C. Harsha Raj, learned Additional Government Pleader takes notice on behalf of the respondent.
3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission itself.
4. The learned counsel for the petitioner submitted that a Show Cause Notice in Form DRC-01A dated 16.05.2024 was issued to the petitioner, stating that there are certain discrepancies in the annual returns filed by the petitioner in GSTR 9, and demanding the payment of tax along with interest. The petitioner was called upon to file his objections and was offered an opportunity of personal hearing. Pursuant to which, the petitioner filed his reply/objections to the Form DRC-01A in detail specifically pleading that the proceedings under Section 73 of the Tamil Nadu Goods and Services Tax Act (in short, TNGST Act), 2017 cannot be invoked without prior verification under Section 61 of the Act. The main contention of the petitioner is that without considering the reply of the petitioner and without acknowledging the receipt of the reply dated 27.05.2024 issued in Form GST DRC-01A, the respondent reiterated the same discrepancies as pointed out in Form GST DRC-01A and proceeded to pass the present impugned order. Aggrieved by the same, the petitioner has filed the present Writ petition, seeking one more opportunity from this Court to substantiate its case and to participate in the proceedings before the respondent.
5. Mr. C. Harsha Raj, learned Additional Government Pleader appearing for the respondent would submit that the conditions laid down in clause (b) of sub-section (3) of Section 15 of the Act have not been satisfied by the petitioner and therefore, the respondent proceeded to pass the impugned order.
6. Heard the learned counsel for the petitioner as well as the learned Additional Government Pleader for the respondent and perused the materials available on record.
7. A bare perusal of Section 15(3)(b) of the Act makes it clear that the value of supply of credit notes should not be excluded while determining the value of supply. Therefore, this Court is of the view that there is no illegality in the proceedings dated 30.05.2024 in Form GST DRC-01 passed by the respondent. However, considering the submission made by learned counsel for the petitioner that without initiating any action under Section 61 of the Act, the respondent has directly proceeded under Section 73 of the Act, and as the learned counsel for the petitioner sought an opportunity to put forth his case before the respondent, this Court is inclined to pass the following order:
(i) The impugned order herein is set-aside.
(ii) The petitioner is directed to file an additional reply/objection within a period of three weeks from the date of receipt of a copy of this order enclosing all relevant documents.
(iii) On receipt of such reply/objection, the respondent is directed to deal with the matter on merits and in accordance with law, after providing an opportunity of personal hearing to the petitioner, as expeditiously as possible, without being influenced by any of the observations made by this Court.
8. With the above directions, this Writ Petition is disposed of. No costs.
Consequently, connected Miscellaneous Petitions are closed.
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