Facts of the Case

The petitioner, Tvl. Singarammal Construction, represented by its partner, challenged an assessment proceeding passed by the State Tax Officer, Aranthangi Assessment Circle, bearing Order No. GSTIN 33ABUFS5858DIZP/2019-20 along with the consequential FORM GST DRC-07 dated 19.04.2023. The petitioner contended that the order had been passed without notice, violating the principles of natural justice and the statutory procedure, and sought that the matter be remanded for fresh assessment after a personal hearing.

Issues Involved

  1. Whether the impugned assessment order, admittedly passed without notice to the petitioner, could be sustained.
  2. Whether the matter warranted remand for fresh adjudication with an opportunity of hearing.

Petitioner's Arguments

  • The impugned order in FORM GST DRC-07 was passed without any notice being served on the petitioner.
  • The lack of a reasonable opportunity of hearing violated principles of natural justice and the statutory requirements for assessment.

Respondent's Arguments

  • The Additional Government Pleader appeared for the respondents; the order does not record any submission disputing that notice had not reached the petitioner.

Court Order/Findings

  • The Court found on a plain look at the impugned order that it was passed without notice to the petitioner.
  • Since the petitioner was not afforded a reasonable opportunity, the impugned order was set aside and the matter remanded to the State Tax Officer to pass a fresh order on merits and in accordance with law.
  • The writ petition was allowed with liberty to the respondent to redo the assessment; connected miscellaneous petitions were closed with no costs ordered.

Important Clarification

  • A GST assessment order passed without prior notice to the assessee is liable to be set aside for breach of natural justice, irrespective of the merits of the underlying tax demand, and must be redone only after due notice and hearing.

Sections Involved

  • Article 226, Constitution of India – writ jurisdiction invoked to challenge the assessment order for breach of natural justice.
  • FORM GST DRC-07, CGST Rules, 2017 – the summary of the demand order issued consequent to the impugned assessment.

Decision – In Favour of

In favour of the Assessee – the assessment order was quashed for want of notice and the matter remanded for a fresh decision after hearing.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P(MD)No.25985 of 2023
Coram: Justice G.R. Swaminathan
Decision Date: 26-10-2023
Disposal Nature: Allowed; impugned order set aside and remanded

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