Case Law Details
Ojus Power & Technologies (P.) Ltd Vs Assistant Commissioner (ST) (Madras High court)
Madras High Court sets aside Impugned Summary Order in Ojus Power & Technologies case. Details on missing order and re-adjudication. Legal insights.
The Madras High Court, in the matter of Ojus Power & Technologies (P.) Ltd vs Assistant Commissioner (ST) [W.P. Nos. 31986 of 2022 dated November 22, 2023], addressed the pivotal issue of a missing detailed order in the proceedings initiated by the Revenue Department. Madras High Court set aside the Impugned Summary Order as no detailed order was uploaded on the portal and remitted back the matter for re-adjudication. This article delves into the facts of the case, the court’s observations, and the implications of the ruling.
Facts:
Ojus Power & Technologies (P.) Ltd (“the Petitioner”) is engaged in the manufacturing of generating sets that produce electricity. Revenue Department (“the Respondent”) conducted audit at the business premises of the Petitioner wherein certain discrepancies were found. The Respondent issued the GST Form DRC-01A for Financial Year 2017-18, 2018-19, and 2019-20 (“FY”) under Section 73(1) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for intimation of tax payable. The Respondent pursuant to Reply filed, issued a Summary Show Cause Notice dated August 23, 2022, (“the SCN”). Thereafter, the Summary Order was issued dated September 27, 2022 (“the Impugned Order”) was issued against the Petitioner.
Aggrieved by the Impugned Order, the Petitioner filed a writ petition contending that only the no detailed order was not uploaded by the Respondent.
Issue:
Whether Proceedings are to be re-adjudicated when no detailed order is uploaded by Revenue Department?
Held:
The Hon’ble Madras High Court in the case of W.P. No. 31986 of 2022 held under:
- Opined that, the detailed order dated September 27, 2022 was signed by the Respondent Authorities only on April 27, 2023.
- Held that, the Impugned Order is set-aside and remitted the matter back to the Respondent authorities for re-adjudication.
- Further Held that, Petitioner is permitted to file reply, if any, in addition to the reply filed earlier by the petitioner in Form GST DRC-01A within a period of thirty (30) days from the date of receipt of a copy of this order.
- Directed that, the Respondent should grant the Petitioner an opportunity of personal hearing and pass orders on merit and in accordance with the law.
Conclusion: The Madras High Court’s decision in the case of Ojus Power & Technologies underscores the importance of uploading detailed orders by the Revenue Department. The ruling ensures fairness in legal proceedings and provides clarity for entities facing such challenges. This development serves as a reminder of the judiciary’s commitment to due process and meticulous adjudication in taxation matters.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
These writ petitions have been filed seeking quash of the impugned proceedings of the first respondent made in Form GST DRC – 07 – (Summary of the order) – (i) Reference No.ZD330922035267F for the financial year 2017-18 dated 27.09.2022; (ii) Reference No.ZD330922035306L for the financial year 2018-19 dated 27.09.2022 and (iii) Reference No.ZD330922035356G for the financial year 2019-20 dated 27.09.2022.
2. The case of the petitioner is that the petitioner is the manufacturer of generating sets which produces electricity at Hosur. Petitioner is an assessee on the file of the respondent in GSTIN No.33AABCO1709L1ZL. An audit was conducted at the business premises of the petitioner as per the proceedings of the Joint Commissioner (ST), Salem, in Roc.No.6983/2021-A12-3, dated 20.09.2021 and the audit was concluded on 29.03.2021. During the course of audit, certain discrepancies were noticed. The respondent has issued Form GST DRC-01A u/s.73(1) of the TNGST Act for the financial years 2017-18, 2018-19 and 2019-20 dated 30.04.2022 intimating the tax payable. The petitioner has filed their objections dated 19.05.2022. The respondent issued Summary of Show Cause notice dated 23.08.2022 and thereafter, issued the Summary Order, dated 27.09.2022. Challenging the same, the present writ petitions have been filed.
3. Heard Mr. S. Rajasekar, learned counsel appearing for petitioner and Ms. Amirta Poonkodi Dinakaran, learned Government Advocate, appearing for respondent.
4. Learned counsel for petitioner submitted that the main grievance of the petitioner is that only the Summary Order has been uploaded and the detailed order has not been uploaded, owing to which the petitioner is unable to challenge the same.
5. Learned Government Advocate appearing for the respondent fairly submitted that only the Summary Order has been uploaded. She has also produced the detailed order dated 27.09.2022 and submitted that though the order was dated 27.09.2022, it was signed by the concerned officer only on 27.04.2023. In view of the same, the matter may be remitted back to the authorities concerned for the purpose of re-adjudication.
6. This Court has considered the rival submissions and perused the materials available on record.
7. On a perusal of the detailed order dated 27.09.2022, this Court finds that the order has been signed by the Assistant Commissioner (ST), Hosur (South-2) only on 27.04.2023. In such circumstances, this Court passes the following order:
(i) The impugned order dated 27.09.2022 is set aside. The matter is remitted back to the authorities concerned for the purpose of re-adjudication;
(ii) Petitioner is permitted to file reply, if any, in addition to the reply filed earlier by the petitioner in Form GST DRC-01A within a period of thirty (30) days from the date of receipt of a copy of this order;
(iii) The respondent is directed to afford an opportunity of personal hearing to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law taking into account the submission of the petitioner.
These Writ Petitions are disposed of with the above direction. No costs. Connected W.M.P.Nos.31426, 31431 and 31438 of 2022 are ordered and W.M.P. Nos. 31428, 31432 and 31439 of 2022 are closed.
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