Case Law Details
Pratyangira Logistics Vs State Tax Officer (Madras High Court)
Writ petition was filed to challenge the impugned order and it was averred that order was passed in violation of natural justice.
Petitioner is engaged in the business of supplying services for transport agency and is registered under the GST Act. During the examination of return for AY 2019-20, the following discrepancies were found:
i) Discrepancy between GSTR 3B and GSTR 1
ii) Discrepancy between GSTR 3B and GSTR 2A
iii) Under declaration of Ineligible IT
It was submitted that notices and order was never served on the assessee but there were uploaded on ‘View notices and order’ of the GST tax portal. Hence, he was unaware of the proceedings initiated against him. Show cause notice in Form DRC-01 dated 22.08.2024 was issued to the petitioner through RPAD and impugned order was passed on 28.08.2024, within 6 days from the issuance of DRC 01 through RPAD, thus the petitioner was unable to participate in the adjudication proceedings or avail the opportunity of personal hearing. If a further opportunity be provided to him, it can explain the alleged discrepancies. Reliance was placed on Sree Manoj International Vs. Deputy State Tax Officer in W.P.No.10977 of 2024 where this court has remanded the matter back in similar circumstances subject to payment of 10% of the disputed taxes. He is ready to pay the 10 % of the dispute tax.
After considering the facts and legal position the impugned order is se-aside and matter is remanded back to appropriate authority after payment of 10% of disputed tax.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition is filed challenging the impugned order in Ref.No.ZD330824253921B dated 28.08.2024, passed by the respondent on the premise that the same was made in violation of principles of natural justice.
2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of supplying services for transport agency and is registered under the GST Act. During the relevant period of 2019-20, the petitioner had filed the returns and paid appropriate However, on examination of the information furnished in the return the following discrepancies were found:
i) Discrepancy between GSTR 3B and GSTR 1
ii) Discrepancy between GSTR 3B and GSTR 2A
iii) Under declaration of Ineligible ITC
3. It is submitted by the learned counsel for the petitioner that an intimation in Form DRC01 was issued on 23.05.2024 followed by 3 reminders viz., 01.07.2024, 17.07.2024 and 08.08.2024. However, the petitioner had not responded to any of the above notices / intimation as neither the show cause notices nor the impugned order of assessment has been served on the petitioner by tender or sending it by RPAD, instead it had been uploaded under “view additional notices and orders” column of the GST Portal, thereby, the petitioner was unaware of the initiated proceedings. Thereafter, another show cause notice in Form DRC-01 dated 22.08.2024 was issued to the petitioner through RPAD and the respondent proceeded to pass the impugned order dated 28.08.2024 within 6 days from the issuance of DRC 01 through RPAD, thus the petitioner was unable to participate in the adjudication proceedings or avail the opportunity of personal hearing. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he would be able to explain the alleged discrepancies.
4. The learned counsel for the petitioner would place reliance upon the recent judgment of this Court in the case of Sree Manoj International Vs. Deputy State Tax Officer in W.P.No.10977 of 2024 dated 25.04.2024, to submit that this court has remanded the matter back in similar circumstances subject to payment of 10% of the disputed taxes.
5. It was further submitted that the petitioner is ready and willing to pay 10% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which the learned Government Advocate appearing for the respondent does not have any serious objection.
6. By consent of both parties, the writ petition stands disposed of on the following terms:
a) The impugned order dated 08.2024 is set aside
b) The petitioner shall deposit 10% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order.
c) If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted from/towards the 10% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 10% of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.
d) The entire exercise of verification of payment, if any, intimation balance sums, if any, to be paid for compliance with the direction of payment of 10% of the disputed taxes, after deducting the sums already paid and payment by the petitioner of the balance amount, if any, on intimation in compliance of the above direction shall be completed within a period of four weeks from the date of receipt of copy of this order.
e) Failure to comply with the above condition viz., payment of 10% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order shall result in restoration of the impugned order.
f) If there is any recovery by way of attachment of Bank account or garnishee proceedings, the same shall be lifted /withdrawn on complying with the above condition viz., payment of 10% of the disputed taxes.
g) On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. It is made clear that if the above conditions viz., 10% of disputed taxes is not complied or objections are not filed within the stipulated period, four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
7. Accordingly, the Writ Petition stands disposed of. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
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