Case Law Details
N.T.K. Jewellers Vs Assistant Commissioner (Kerala High Court)
Introduction: The Kerala High Court recently dismissed a writ petition filed by N.T.K. Jewellers challenging the order under Section 73 of the CGST/SGST Act, 2017. The petitioner contested a tax liability assessment of Rs.6,36,995, citing a violation of natural justice as the grounds for approaching the court.
Writ Petition Grounds: The petitioner, instead of opting for a statutory appeal against the assessment order, approached the High Court, alleging a breach of natural justice in the proceedings.
Assessment Process: The assessment order revealed that the petitioner was issued a show-cause notice, to which no reply was filed. Subsequently, a notice pointing out discrepancies in the return was issued, and the petitioner responded. However, when a notice under Section 73(1) of the KGST Act, 2017 was served, the petitioner failed to file a reply.
Court’s Observation: The court noted that the Assessing Authority, in the impugned order, mentioned the petitioner’s failure to respond after the intimation in DRC-01. The court expressed confidence in the authority’s finding regarding notice service.
Grounds for Dismissal: The court emphasized that the petitioner, if aggrieved, should have opted for an appeal rather than approaching the court based on the alleged violation of natural justice, which the court found unsubstantiated.
Conclusion: The Kerala High Court disposed of the writ petition, granting the petitioner the liberty to file an appeal against the order issued by the 3rd respondent. The court highlighted that the appeal process is the appropriate course of action for addressing grievances, and the petitioner has until January 31, 2024, as per Notification No.53/2023, to file the appeal.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. The present writ petition has been filed impugning Ext.P5 order issued by the 3rd respondent under Section 73 of the CGST/SGST Act, 2017.
2. The petitioner has been assessed for the tax liability of Rs.6,36,995/-. Instead of filing statutory appeal against the said order, the petitioner has approached this Court in the present writ petition. The ground for approaching this Court is violation of the principles of natural justice.
3. The assessment order would itself disclose that the petitioner was issued the show-cause notice, to which the petitioner had not filed reply. Pointing out the discrepancies in the return, the petitioner had been issued Ext.P1 notice dated 30th July, 2020. The petitioner filed reply to the said notice in GST ASMT- 10 vide Ext.P2. After considering the reply, the notice under Section 73(1) of the KGST Act, 2017 has been issued to the petitioner vide Ext.P4. However, no reply was filed to the said notice in DRC-0 1. The Assessing Authority in the impugned order itself has mentioned that after intimation in DRC-01, which was served on the petitioner, the petitioner failed to file reply, and therefore, whatever material was available, including the reply filed to the notice in GST ASMT-10, the petitioner has been assessed for the tax as mentioned above.
4. This Court has no reason to believe that the authority would record an incorrect finding of fact regarding service of notice to the petitioner in the order impugned herein. If the petitioner is aggrieved by the order passed, he ought to have filed an appeal instead of approaching this Court on the ground of violation of principles of natural justice, which does not appear to be correct.
5. In view thereof, the present writ petition is disposed of, with liberty to the petitioner to file the appeal against the said order issued by the 3rd respondent. Vide Notification No.53/2023, the limitation for filing the appeal has been extended till 31st January 2024.
