Madras High Court
Tvl.Silver Cloud Estates Private ... vs The State Tax Officer on 9 January, 2025
Author: Mohammed Shaffiq
Bench: Mohammed Shaffiq
W.P.No.547 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED :09.01.2025
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
W.P. No.547 of 2025
and
W.M.P.Nos.650 and 653 of 2025
Tvl.Silver Cloud Estates Private Limited,
Represented by its Director Maria Augosta Victorina Coelho,
1/124-B4, Silver Cloud Estate,
Ooty Road,
Gudalur 643 211. ... Petitioner
Vs.
The State Tax Officer,
Gudalur Assessment Circle,
12/720/D3 D.J.Complex
Devar Solai Road Gudalur,
Bazaar Post,
Gudaur 643 212. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of India
praying to issue a Writ of Certiorari and call for the records pertaining to the
impugned order in Form GST DRC-07 bearing reference number
ZD330824014321W/2019-20 dated 02.08.2024 issued by the respondent and
quash the same.
For Petitioner : Mr.G.Derrick Sam
For Respondent : Mr.C.Harsha Raj,
Additional Government Pleader.
ORDER
https://www.mhc.tn.gov.in/judis 1/6 W.P.No.547 of 2025 The present writ petition is filed challenging the impugned order passed by the respondent dated 02.08.2024 relating to the assessment year 2019-20.
2. The petitioner 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 verification of the petitioner's monthly return, the following discrepancies were noticed viz., i. Input Mismatch (GSTR-3B and GSTR-2A) ii. TCS Mismatch (GSTR-8 and GSTR-1) iii. Interest payable for late filing of returns. 2.1. Pursuant thereto, a notice in DRC-01A was issued on 04.05.2023, followed by a Show Cause Notice in DRC-01 on 15.11.2023 and reminders on 18.12.2023, 04.04.2024 and 02.05.2024. 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 under View Additional Notices column in the GST Portal, thereby, the https://www.mhc.tn.gov.in/judis 2/6 W.P.No.547 of 2025 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 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.
5. By consent of both parties, the writ petition stands disposed of on the following terms:
a) The impugned order dated 02.08.2024 is set aside.
b) The petitioner shall deposit 25% of the disputed taxes as admitted by https://www.mhc.tn.gov.in/judis 3/6 W.P.No.547 of 2025 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 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 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. https://www.mhc.tn.gov.in/judis 4/6 W.P.No.547 of 2025
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.
6. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.
09.01.2025 Speaking (or) Non Speaking Order Index : Yes/ No Neutral Citation: Yes/No shk MOHAMMED SHAFFIQ, J.
shk To:
The State Tax Officer, https://www.mhc.tn.gov.in/judis 5/6 W.P.No.547 of 2025 Gudalur Assessment Circle, 12/720/D3 D.J.Complex Devar Solai Road Gudalur, Bazaar Post, Gudaur 643 212.W.P. No.547 of 2025
and W.M.P.Nos.650 and 653 of 2025 09.01.2025 (2/3) https://www.mhc.tn.gov.in/judis 6/6