Madras High Court
Ulganathan Suresh vs Assistant Commercial (St) on 30 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.3322 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.3322 of 2025
and
W.M.P.Nos.3692, 3694, 3695 and 3697 of 2025
Ulganathan Suresh ... Petitioner
Vs.
1.Assistant Commercial (ST),
Sholinganallur Assessment Circle,
2nd Floor, Room No.18,
The Integrated Building for Commercial Taxes and Registration
Department, (South Tower), Nandanam,
Chennai.
2.The Branch Manager,
Axis Bank,
No.284/6, Lakshman Nagar, Khandan Chavadi,
Perungudi, Chennai 600 096.
3.Assistant Commissioner (ST), (FAC),
Sholinganallur Assessment Circle,
2nd Floor, Integrated Building for Registration and
Commercial Taxes Departments, Nandanam,
Chennai 600 035. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Certiorari calling for the records in the file of the
first respondent and quash the impugned order under Section 73 of the Tamil
Nadu Goods and Service Tax Act, 2017/ Central Goods and Service Tax Act,
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W.P.No.3322 of 2025
2017 including the summary of the order in Form GST DRC-07 both dated
06.08.2024 and having Reference Number ZD330824047233K and its
annexure dated 06.08.2024 in GSTIN:33AXJPS7963E1Z2/2019-20 passed by
the first respondent for the FY 2019-20.
For Petitioner : M/s.N.V.Lakhsmi
For Respondents : Mr.V.Prashanth,
Government Advocate for R1 and R3.
ORDER
The present writ petition is filed challenging the impugned order passed by the first respondent dated 06.08.2024 relating to the assessment year 2019- 20.
2. The petitioner is engaged in the business of outdoor catering and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2019-20, the petitioner filed its returns and paid the appropriate taxes. However, on examination of the information furnished in GSTR-01, GSTR-2A, GSTR-3B, EWB and other records available, the following discrepancies were noticed viz., i. Excess Claim of Input Tax Credit.
ii. Under Declaration of Ineligible ITC 2.1. Pursuant thereto, a Show Cause Notice in DRC-01 was issued on https://www.mhc.tn.gov.in/judis 2/8 W.P.No.3322 of 2025 24.05.2024, followed by reminders on 29.06.2024, 09.07.2024 and 18.07.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing. Hence, the impugned order came to be passed, confirming the proposal.
3. The impugned order is challenged on the premise that 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 in the GST Portal, thereby, the petitioner was unaware of the initiated proceedings and was thus unable to participate in the adjudication proceedings.
4. It is submitted by the learned counsel for the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancies. The learned counsel for the petitioner would then place reliance upon the recent judgment 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, to submit that this court has remanded the matter back in similar circumstances subject to payment of 25% of the disputed taxes. It was further submitted that the petitioner is ready and willing to pay 25% of the disputed tax and that they https://www.mhc.tn.gov.in/judis 3/8 W.P.No.3322 of 2025 may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal. It is submitted that there is bank attachment and the same may be lifted to which the learned Government Advocate appearing for the first and third respondents does not have any serious objection.
5. By consent of both parties, the writ petition stands disposed of on the following terms:
a) The impugned order dated 06.08.2024 is set aside.
b) The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondents 1 and 3, 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 25% of disputed taxes directed to be paid.
The assessing authority shall then intimate the balance amount out of 25 % 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 of the balance sums, if any, to be paid for compliance with the direction of https://www.mhc.tn.gov.in/judis 4/8 W.P.No.3322 of 2025 payment of 25% 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 with 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 25% 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 25 % 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., 25% 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.
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6. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
30.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No Neutral Citation: Yes/No shk To:
1.Assistant Commercial (ST), Sholinganallur Assessment Circle, 2nd Floor, Room No.18, The Integrated Building for Commercial Taxes and Registration Department, (South Tower), Nandanam, Chennai.
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2.The Branch Manager, Axis Bank, No.284/6, Lakshman Nagar, Khandan Chavadi, Perungudi, Chennai 600 096.
3.Assistant Commissioner (ST), (FAC), Sholinganallur Assessment Circle, 2nd Floor, Integrated Building for Registration and Commercial Taxes Departments, Nandanam, Chennai 600 035.
MOHAMMED SHAFFIQ, J.
shk https://www.mhc.tn.gov.in/judis 7/8 W.P.No.3322 of 2025 W.P. No.3322 of 2025 and W.M.P.Nos.3692, 3694, 3695 and 3697 of 2025 30.01.2025 (2/2) https://www.mhc.tn.gov.in/judis 8/8