Madras HC allows GST Assessment Appeal for Nirman Enconprojects

Tvl. Nirman Enconprojects Private Limited Vs State Tax Officer (Madras High Court)

Madras High Court has addressed a writ petition filed by Tvl. Nirman Enconprojects Private Limited, challenging a GST assessment order for the assessment year 2019-2020. The petitioner argued that the assessment order, dated 03.02.2023, was passed without providing sufficient opportunity to present their case, thereby violating the principles of natural justice. They sought to have the order set aside.

The respondent, represented by the government advocate, countered that a show-cause notice had been issued on 15.11.2022, and therefore, the assessment was conducted lawfully. They also pointed out that the petitioner had an alternative remedy through an appeal to the appellate Deputy Commissioner (GST Appeals) under Section 107 of the GST Act, 2017, but had instead directly approached the High Court.

Acknowledging the availability of the statutory appeal mechanism, the Madras High Court disposed of the writ petition, granting the petitioner liberty to pursue their appeal. The court directed the appellate authority to entertain the appeal if filed within two weeks from the order’s receipt, without considering the limitation period. Furthermore, the court instructed the appellate authority to dispose of the appeal within three months, ensuring a timely resolution of the dispute. This decision emphasizes the importance of exhausting statutory remedies before approaching the High Court, while also ensuring that procedural fairness is upheld.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

This writ petition is filed challenging the assessment order passed by the respondent, dated 03.02.2023, for the assessment year 2019-2020.

2. The learned counsel appearing for the petitioner submits that the order of assessment for the year 20 19-2020 has been passed without providing sufficient opportunity to the petitioner, which according to the petitioner, is in violation to the principles of natural justice. Therefore, the order impugned in this writ petition is liable to be set aside.

3. J.K.Jayaselan, learned Government Advocate appearing for the respondent submits that the impugned assessment order has been passed after issuing show cause notice to the petitioner on 15.11.2022 and therefore, there is no need to interfere with the impugned order. He further submits that the petitioner is having an appeal remedy before the appellate Deputy Commissioner (GST Appeals) (State Tax), Madurai and Tirunelveli, under Section 107 of the GST Act, 2017. However, without invoking the appeal remedy, the petitioner has straightaway approached this Court.

4. Recording the submission made by the learned Government Advocate that the petitioner is having an appeal remedy before the appellate Deputy Commissioner (GST Appeals) (State Tax), Madurai and Tirunelveli, under Section 107 of the GST Act, 2017, this writ petition is disposed of, with liberty to the petitioner to approach the appellate authority and raise all the grounds raised in this writ petition in the appeal. In the event, if any appeal is filed within a period of two weeks from the date of receipt of a copy of this order, the same shall be entertained by the appellate authority without insisting on the limitation and disposed of in accordance with law, within a period of three months thereafter. There shall be no order as to costs. Consequently, connected Miscellaneous Petition is closed.