Facts of the Case

Tvl. Singarammal Construction, a partnership firm engaged in construction, represented by its partner John Arumugam, is registered under GST bearing GSTIN 33ABUFS5858D1ZP. The second respondent, the State Tax Officer, Aranthangi Assessment Circle, Pudukkottai District, passed an assessment order along with a summary in Form GST DRC-07 (Reference No. ZD3304230894956) dated 19.04.2023 against the Petitioner. Aggrieved that the order was passed without any prior notice or opportunity of personal hearing, the Petitioner approached the Madurai Bench of the Madras High Court under Article 226 of the Constitution, seeking a writ of certiorarified mandamus to quash the impugned order and direct the second respondent to redo the assessment afresh after granting an opportunity of hearing.

Issues Involved

  1. Whether the impugned GST assessment order and the accompanying Form GST DRC-07 summary were passed in violation of the principles of natural justice for want of notice to the Petitioner.
  2. Whether such an order, if found to be passed without notice, ought to be set aside and the matter remanded for fresh adjudication.

Petitioner's Arguments

  • The impugned assessment order and Form GST DRC-07 summary were passed by the second respondent without issuing any notice to the Petitioner.
  • The order was passed in gross violation of the principles of natural justice and in breach of the statutory provisions governing assessment.
  • The Petitioner sought quashing of the order and a direction to the second respondent to redo the assessment after affording an opportunity of personal hearing.

Respondent's Arguments

  • The Additional Government Pleader appeared for the respondents; the recorded order does not indicate any substantive defence being advanced against the Petitioner's claim of want of notice.

Court Order/Findings

  • The Court, on a bare perusal of the impugned order, found that it was passed without notice to the Petitioner.
  • Since the petitioner was not given a reasonable opportunity, the impugned assessment order was set aside.
  • The matter was remanded to the second respondent to pass a fresh order on merits and in accordance with law.
  • The writ petition was allowed with no order as to costs, and the connected miscellaneous petitions were closed.

Important Clarification

  • An assessment order — including the accompanying Form GST DRC-07 summary — passed without prior notice to the taxpayer offends the principles of natural justice and is liable to be set aside on that ground alone, without the Court examining the merits of the tax demand.
  • Setting aside for want of notice ordinarily results in remand, not final closure — the taxing authority retains liberty to redo the assessment strictly in accordance with law after granting a hearing.

Sections Involved

  • Form GST DRC-07 under the Central Goods and Services Tax Rules, 2017 — the summary of the assessment order raising the demand.
  • Article 226 of the Constitution of India, 1950 — invoked for the writ remedy before the High Court.
  • Principles of natural justice as applicable to assessment proceedings under the Tamil Nadu Goods and Services Tax Act, 2017.

Decision – In Favour of

In favour of the Assessee. The Madurai Bench set aside the impugned assessment order for want of notice and remanded the matter for a fresh order on merits, though the ultimate tax liability remains to be determined afresh by the second respondent.

Related Case Laws

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

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P(MD)No.25988 of 2023 and W.M.P.(MD)Nos.22365 and 22366 of 2023
  • CNR: Not available
  • Coram: Justice G.R. Swaminathan
  • Decision Date: 26-10-2023
  • Disposal Nature: Allowed (assessment order set aside and remanded)

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