Case Law Details
Tvl.Saras Electricals Vs State Tax Officer (Madras High Court)
Madras High Court reviewed the case of Tvl. Saras Electricals v. State Tax Officer, where the petitioner challenged a GST assessment order dated March 1, 2024, for the assessment year 2021-22. The petitioner, a dealer in electrical and electronic goods, had filed GST returns and paid taxes, but a surprise inspection in July 2023 revealed discrepancies, including fake e-way bills, mismatches between GSTR-3B and GSTR-2A, and unpaid interest on reverse charge mechanism (RCM). Subsequently, notices were issued via the GST portal, but the petitioner neither responded nor paid the disputed tax, leading to the assessment order. The petitioner contested the order, arguing that notices were not properly served and that he was unable to access the GST portal to participate in the adjudication process.
The court found merit in the petitioner’s claim and set aside the impugned assessment order, directing the petitioner to deposit 25% of the disputed tax within two weeks. Upon compliance, the assessment order would be treated as a show-cause notice, allowing the petitioner four weeks to submit objections with supporting documents. The respondent was instructed to consider the objections and pass a fresh order after providing a fair hearing. If the petitioner failed to deposit the amount or submit objections within the stipulated time, the assessment order would be reinstated. With this direction, the writ petition was disposed of without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition is filed challenging the impugned order dated 01.03.2024 passed by the respondent relating to the assessment year 202 1-2022.
2. Mr. T.N.C.Kaushik, learned Additional Government Pleader takes notice on behalf of the respondent. By consent of the parties, the main Writ Petition is taken for disposal at the admission stage.
3. The petitioner is a dealer in Electrical and Electronic items and registered under Goods and Services Act, 2017. During the relevant period, the petitioner had filed its return and paid appropriate taxes. Surprise inspection was conducted in the premises of the petitioner on 18.07.2023 and 19.07.2023, the following defects were noticed:
(i) List of E-way Bills generated for outward supply without actual movement of goods using FAKE vehicle numbers.
(ii) Difference between GSTR 3B and GSTR 2A
(iii) Interest for RCM
3.1. Subsequently, notice was issued in Form DRC-0 1 A to the petitioner on 07.02.2023 through GST Portal, followed by a Show Cause Notice in Form DRC-0 1, dated 10.10.2023 along with an opportunity of personal hearings dated 07.11.2023, 15.12.2023 & 22.02.2024. However, the petitioner had neither filed its reply nor paid the tax amount. Hence, the impugned order came to be passed confirming the proposals.
4. The impugned order is challenged on the premise that neither the show cause notices nor the impugned order of assessment has been served by tendering to the petitioner or by registered post, instead it was uploaded in the common It was further submitted that the petitioner was unable to access the common portal and thus unable to participate in the adjudication proceedings.
5. The issues that arise for consideration in the impugned order is the aforesaid discrepancies. It is also submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, he would be able to explain the aforesaid discrepancies.
6. The learned counsel for the petitioner would place reliance upon the gment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024. It was further submitted that the petitioner is ready and willing to pay 25% 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 Additional Government Pleader appearing for the respondent does not have any serious objection.
7. In view thereof, the impugned order dated 01.03.2024 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of two (2) weeks from the date of receipt of a copy of this order. 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. If the above deposit is not paid or objections are not filed within the stipulated period, i.e., two weeks and four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
8. Accordingly, the Writ Petition stands disposed of. No costs. Consequently, connected miscellaneous petitions are closed.
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