Case Law Details
Tvl. T. T. Textiles Vs Assistant Commissioner (ST) (Madras High Court)
Introduction: In a recent development, the Madras High Court addressed a series of writ petitions challenging tax assessment orders and final notices issued against T.T. Textiles. The petitions, filed under W.P.Nos.35050, 35052, 35056, 35060, and 35065 of 2023, contested the legality of the impugned orders dated 14.06.2023, and the final notices dated 14.09.2023.
Background: The primary contention raised by T.T. Textiles, as argued by its counsel, T.N.C. Kaushik, was the lack of opportunities provided by the respondents for filing replies or attending personal hearings before the assessment order was passed. The petitioner claimed to have only become aware of the assessment order on 14.09.2023 when served with the final notice.
Legal Proceedings: The Additional Government Pleader, representing the respondents, took notice on behalf of the government. Both parties consented to the court disposing of the main writ petitions at the admission stage itself.
Petitioner’s Argument: The petitioner argued that the statutory appeal deadline had lapsed due to the failure of the respondents to provide notice or an opportunity for a personal hearing. The petitioner sought relief from the court against the impugned order and final notice.
Court’s Consideration: After hearing the arguments from both sides and reviewing the available materials on record, the court observed the lack of notice and personal hearing provided to the petitioner before the assessment order was passed.
Court’s Decision: Considering the circumstances, the court granted the petitioner the liberty to file a statutory appeal before the Appellate Authority within 30 days from the receipt of the court’s order. The court directed the Appellate Authority to consider the appeal without insisting on the issue of limitation.
Interim Relief: The court issued an interim stay on recovery proceedings until the filing of the appeal. Additionally, the attachment order on the petitioner’s bank accounts was temporarily lifted, allowing the petitioner to operate the accounts, subject to providing details of deposits, withdrawals, and the utilization of withdrawn funds.
Conditions and Conclusion: The court clarified that the interim reliefs would automatically stand vacated if the petitioner failed to file the appeal within the specified 30-day period.
In conclusion, the Madras High Court’s decision in T.T. Textiles Vs. Assistant Commissioner sets a precedent for cases where taxpayers argue against procedural lapses in tax assessments, providing an avenue for appeal and temporary relief from enforcement actions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The writ petition in W.P.No.35050 of 2023 has been filed challenging the impugned order dated 14.06.2023.
2. The writ petition in W.P.No.35052 of 2023 has been filed challenging the impugned final notice dated 14.09.2023.
3. The writ petitions in W.P.Nos.35056, 35060 and 35065 of 2023 have been filed to direct the 1st respondent to release the attachment made to the bank accounts of the bank accounts of the petitioner.
4. T.N.C.Kaushik, learned Additional Government Pleader, takes notice on behalf of the respondents. By consent of the parties, the main writ petitions are taken up for disposal at the admission stage itself.
5. The case of the petitioner is that prior to the passing of the assessment order, the respondents had neither provided any opportunities for filing reply nor provided any opportunities of personal hearing to the petitioner. The petitioner came to know about the said assessment order dated 14.06.2023 only when the final notice was physically served to him on 14.09.2023.
6. Under these circumstances, the last date for filing the appeal was expired since the petitioner is supposed to have filed the statutory appeal on or before 14.09.2023. Thereafter, a further period of 30 days is also available if sufficient reason was provided by the petitioner for the delay in filing the appeal, in which case, the petitioner is permitted to file the returns on or before 14.10.2023. However, the said period was also expired. Hence, the petitioner filed these writ petitions challenging the impugned order and the final notice.
7. The learned counsel for the respondent would submit that the petitioner is still entitled to file the statutory appeal by approaching the appropriate Appellate Authority, in which case, this Court can grant liberty to the petitioner with regard to the petitioner with regard to the same.
8. Heard the learned counsel for the petitioner and the respondent and also perused the materials available on record.
9. In the present case, the respondent had neither served any notice nor provided any opportunity of personal hearing to the petitioner. Under these circumstances, the impugned assessment order was passed by the respondent on 14.06.2023 and the petitioner came to know about the said impugned assessment order when the final notice was served to him on 14.09.2023. By this time, the limitation of filing an appeal has been However, it was submitted by the learned counsel for the respondent that the petitioner is still entitled to file the statutory appeal before the concerned Appellate Authority.
10. Considering all these aspects, this Court is inclined to grant liberty to the petitioner to file the appeal before the Appellate Authority within a period of 30 days from the date of receipt of copy of this In such case, the Appellate Authority is directed to consider the said appeal without insisting the issue of limitation.
11. In the meantime, there shall be an order of interim stay of the recovery proceedings until the filing of appeal. As far as the attachment order is concerned, until the filing of appeal, the petitioner is permitted to operate their bank accounts upon rendering the details, with regard to the deposit and withdrawal made in the respective bank account and also with regard to the utilisation of the money, which was withdrawn from those accounts, before the Authority concerned.
12. It is also made clear that if the petitioner failed to file the appeal within a period of 30 days, the aforesaid interim reliefs granted by this Court will automatically stand vacated.
13. With the above directions, these writ petitions are disposed of. No cost. Consequently, the connected miscellaneous petitions are also closed.
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