Can order be challenged on the ground that the impugned orders have been passed without compliance of the mandatory requirements of Section 75(4) of the respective Goods and Service Tax?

mandatory requirements of Section 75(4)

Case Title

Tvl. Sri Amman Metal Works vs The State Tax Officer.

Court

Madras High Court

Honorable Judges

Justice C.Saravanan

Citation

2022 (3) GSTPanacea 276 HC Madras

W.P (MD) Nos 3945 to 3948 of 2022

And

W.M.P.(MD).Nos 3391,3389,3395 and 3393 of 2022

Judgement Date

03-March-2022

Council for Petitioner

R.Senniappan

Council for Respondent

V.Nirmalkumar

Section

Section 75(4)

In Favour of

Partly in Favour of Assessee

The Madras High Court bench of Justice C.Saravanan has held that perused the records so-called reply, dated 25.06.2021 which has been enclosed along with the typed-set which is stated to have not been filed by the petitioner. the petitioner would be required to deposit only 10% of the amount as a condition for pre-deposit , court  inclined to quash the impugned order in turn. In case, the petitioner fails to give reply, the respondents are entitled to pass appropriate orders on merits based on the records that are available.

FACTS OF THE CASE

Writ Petition filed Court to issue a Writ of Certiorari, calling for the records on the files of the respondent in GSTIN 33ABUFS8427N1Z9/2018-19 dated 09.11.2021 and quash the same as being without jurisdiction and authority of law and contrary to the principles of natural justice

The petitioner has challenged the impugned orders, dated 09.11.2021 for the assessment years 2018-2019, 2019-2020, 2020-2021 and 2021-2022. The impugned orders are challenged on the ground that the impugned orders have been passed without compliance of the mandatory requirements of Section 75(4) of the respective Goods and Service Tax enactments, 2017.

 The learned counsel for the petitioner submits that though the impugned orders preceded show cause notices, dated 28.09.2021, the petitioner replied to the same on 25.10.2021, before the expiry of 30 days. The learned counsel for the petitioner, however, fairly submitted that the petitioner had not obtained a dated acknowledgement in the reply filed on 25.10.2021. The learned counsel for the petitioner submits that the impugned orders, however, proceeds as if the petitioner has not replied to the respective show cause notices which preceded the impugned orders. It is therefore, submitted that the impugned orders are liable to be quashed.

Opposing the prayer, the learned counsel for the respondent submits that the petitioner had not replied to the respective show cause notices, dated 28.09.2021 and that after the impugned orders came to be passed on 09.11.2021, an attempt was made by the petitioner to give a reply on 12.11.2021. The learned counsel for the respondent has produced a copy of the same, which also bears the seal of the department.

mandatory requirements of Section 75(4)

COURT HELD

Considering the facts as recorded, held that perused the records so-called reply, dated 25.06.2021 which has been enclosed along with the typed-set which is stated to have not been filed by the petitioner. The petitioner would be required to deposit only 10% of the amount as a condition for pre-deposit, court inclined to quash the impugned order in turn, subject to the petitioner paying a sum of Rs.7.5 lakhs within a period of 30 days from the date of receipt of copy of this order.

If such deposit is made by the petitioner within such period, the respondents shall pass a fresh order after calling the petitioner for a hearing within a period of 60 days thereafter.

The impugned orders which now stands quashed are to be treated as corrigendum to respective show cause notices, dated 28.09.2021. It is open for the petitioner to give proper reply. In case, the petitioner fails to give reply, the respondents are entitled to pass appropriate orders on merits based on the records that are available

In case, the petitioner fails to deposit the aforesaid amount of Rs.7.5 lakhs within a period of 30 days, the impugned orders stand revived without further orders of this Court.

mandatory requirements of Section 75(4)

ANALYSIS OF THE JUDGEMENT

Court perused the records so-called reply, dated 25.06.2021 which has been enclosed along with the typed-set which is stated to have not been filed by the petitioner. The petitioner has made a first attempt to reply to the show cause notice, after the impugned orders have been passed on 09.11.2021. The petitioner has an alternate remedy before the Appellate Commissioner under Section 107 of the respective Goods and Service Tax enactments.

Considering the fact that the petitioner would be required to deposit only 10% of the amount as a condition for pre-deposit t, court  inclined to quash the impugned order in turn.

In case, the petitioner fails to give reply, the respondents are entitled to pass appropriate orders on merits based on the records that are available.

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Tvl. Sri Amman Metal Works

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Madras High Court