Petitioner | Sree Constructions |
Respondent | The Assistant Commissioner (ST) |
Decision by | Andhra Pradesh High Court |
Date of order or Judgement | 21- March-2022 |
Citation no. | Writ Petition No.24955 of 2021 2022 (3) GSTPanacea 13 HC Andhra Pradesh |
Hon’ble Judge | Justice C.Praveen Kumar Justice V. Sujatha |
Decision | Matter Remanded |
Notice To be Issued- No notice was given to the petitioner before contemplating to pass an adverse order. Such a course was prejudicial to the interest of assesse and the same would be in violation of Sub-section (4) of Section 75 of CGST Act, 2017.
Notice To be Issued-Facts of the Case
Notice To be Issued-The petitioner executed certain works entrusted to it by M/s Tata Projects Limited, and issued Tax invoices to M/s Tata. It was submitted that as per the terms of the agreement, the said Contractee had to pay Service Tax on the same to the petitioner on issue of Tax Invoices by the Petitioner.
Though, the Petitioner issued Tax invoices, the Contractee failed to pay GST amounts to the petitioner and withheld the same due to which the petitioner could not file its returns and pay the Taxes as the GST portal would not accept the returns unless accompanied by payment of taxes.
It was submitted that the total GST liability for the works executed for the petitioner during the tax period is about Rs. 1,85,84,695/-.
A Garnishee Notice came to be issued to the Contractor stating that the petitioner had failed to pay taxes, penalty and interest under the GST Act and directed them to pay the said amount.
The order of the Assessment passed by the authority, the petitioner filed the present Writ Petition mainly on the ground that an opportunity of hearing should have been granted to the petitioner in terms of Sub-Section (4) of Section 75 of the SGST Act, 2017.
Notice To be Issued-Argument before the Court
Notice To be Issued-The petitioner submits that since no opportunity of hearing was given, the matter to be remanded back to the Assessing Authority as it came to be passed in violation of principles of natural justice.
The Government Pleader for Commercial Taxes, submitted that though the Assessment Order was passed in the month of July, 2020, the petitioner did not approach the Court within a reasonable time.
Furthermore, petitioner approached the Court under writ petition only after issuance of Garnishee Notice. The petitioner could have availed the remedy of appeal as provided in Section 107 of CGST Act, 2017.
Held by the Court
Notice To be Issued-The court observed that it was evident that an opportunity of hearing was required to be given where a request was made in writing to the person chargeable with taxes and penalty or where any adverse decision was contemplated against such person.
No notice was given to the petitioner before contemplating to pass an adverse order. Such a course was prejudicial to the interest of assesse and the same would be in violation of Sub-section (4) of Section 75 of CGST Act, 2017.
The writ petition was thus allowed setting aside the Assessment Order and the matter was remanded to respondent for passing appropriate orders.
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