Tvl. T. Arivazhagan Vs Deputy State Tax Officer (Madras High Court)
The Madras High Court addressed a challenge against an assessment order dated July 24, 2023, by Tvl. T. Arivazhagan. The petitioner argued that the assessment order exceeded the scope of the initial show cause notice, which proposed a tax liability of Rs.10,45,870, whereas the confirmed demand was Rs.20,08,000. The petitioner also claimed inadequate opportunity to contest the demand due to the auditor’s medical condition. The Court accepted the claim that the order extended beyond the show cause notice’s scope and directed that the assessment order be treated as a show cause notice. The petitioner is required to pre-deposit 10% of the disputed amount as per the original notice and respond within fifteen days. Upon receiving the pre-deposit and reply, the tax officer must provide a fair hearing and issue a new order within three months.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An assessment order dated 24.07.2023 is assailed both on the ground of not providing the petitioner a reasonable opportunity to contest the tax demand on merits and also on the ground that the impugned order travels beyond the show cause notice. The petitioner asserts that he was unable to participate in proceedings culminating in the impugned order because GST compliances were entrusted to an auditor and the said auditor was critically unwell during the relevant period.
