Case Law Details
Tech Connect Retail Private Limited Vs Commercial Tax Officer (Madras High Court)
Tech Connect Retail Private Limited challenged a GST notice issued by the Commercial Tax Officer, arguing that it was served prematurely. The company, engaged in retail sales of consumer goods, fashion apparel, and electronics, had already filed its GST returns and paid applicable taxes for the 2017-18 period. The dispute arose when an intimation notice (Form DRC-01A) was issued on August 23, 2023, granting the company until September 7, 2023, to respond. However, before this deadline expired, a show-cause notice (Form DRC-01) was issued on August 29, 2023, leading the petitioner to challenge its validity on procedural grounds.
The Madras High Court ruled that the petitioner should be given a fair opportunity to respond to the intimation notice before any further action is taken. The court directed that Tech Connect Retail be allowed to submit its reply within a week and permitted the company to request copies of relevant documents, such as audit slips relied upon by the tax authorities. The tax department was instructed to consider the response and any jurisdictional objections before passing an order, ensuring due process and a fair hearing. The writ petition was accordingly disposed of without costs.
The present writ petition is filed challenging the impugned notice dated 29.08.2023 in Form DRC-01 on the limited ground that the same came to be issued even before the time granted to the petitioner to respond to Form GSTR DRC-01A dated 23.08.2023 had expired.
2. The petitioner is engaged in the business of retail sale of various consumer goods, fashion apparels and electronic equipments etc. and is registered under the Goods and Services Tax Act, 2017. The petitioner for the relevant period viz., 2017-18 had filed the returns and paid appropriate taxes.
3. It is submitted by the learned counsel for the petitioner that an intimation notice in Form DRC-01A was issued on 23.08.2023, the petitioner ought to submit its reply by 07.09.2023. However, the impugned notice in Form DRC-01 was issued on 29.08.2023 even before the expiry of time specified
4. The learned counsel for the Respondents would submit that the petitioner may respond to the DRC-01A within a period of one week from the date of receipt of a copy of this order and would thereafter proceed in accordance with law.
5. The learned counsel for the petitioner would submit that subsequent to the issue of DRC-01A the respondent has relied upon certain documents in particular audit slips and would request that copy of such materials relied by the concerned authority, may be furnished to the petitioner. It may be relevant to note that though the petitioner had challenged DRD-01 A , he would confine his prayer that the respondent may furnish copy of the materials sought to be relied upon by the respondent.
6. It is always open to the petitioner to make a request of the copy of the materials sought to be relied upon by the authority. If any request is made, the same would be considered in accordance with law. It is also open to the petitioner to raise all contentions in response to DRC-01A including jurisdictional issues. The Respondent authorities would consider such request/ reply if any filed and pass orders in accordance with law after affording the petitioner a reasonable opportunity of hearing.
7. The writ petition stands disposed of. No costs. Consequently, the connected miscellaneous petitions are closed.
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