Tvl. Diamond Shipping Agencies Private Limited Vs Assistant Commissioner (ST) (Madras High Court)
Date: August 28, 2023
Subject Matter
Assessment order cannot be valid if it is passed without serving proper notice, as mandated by Section 169(1)(b)
Summary
The Madras High Court (Madurai Bench) issued a ruling emphasizing the importance of following proper procedures in GST assessments. The court held that an assessment order cannot be valid if it is passed without serving proper notice, as mandated by Section 169(1)(b) of the CGST Act. The case involved M/s. Tvl. Diamond Shipping Agencies Pvt. Ltd. who filed a writ petition challenging an assessment order that was passed without considering their annual returns and audit statements, and without granting them an opportunity to submit the required documents. The court quashed the assessment order, allowed the writ petition, and directed the respondent to provide an opportunity for a personal hearing and complete the assessment proceedings within eight weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This Writ Petition is filed to quash the impugned order dated 17.08.2022 for the assessment year 2017-2018.
2. The contention of the petitioner is that assessment order is passed by violative the principles of natural justice and consequently direct the respondent to re-do the assessment. The petitioner is having three business verticals of the same PAN, but the respondents have passed order without considering the annual returns in GSTR-9 and Auditor’s statement filed in GSTR-9C for the said three business verticals. Therefore, the petitioner claims that if an opportunity is granted, he would explain the same to the authorities. Since the same is not granted, the petitioner is before this Court. Moreover, the respondent without serving physical notice / order the impugned order is passed which is against the Section 169(1)(b) of the Act.
3. This Court is of the considered opinion that the impugned order is passed without serving notice as per section 169(1)(b) and without taking into account that the petitioner is having three business verticals. Therefore, this Court is inclined to quash the impugned order. Hence, the impugned order is quashed. The respondent is directed to grant opportunity to the petitioner, preferably grant personal hearing and thereafter pass orders. The petitioner shall produce all the evidences and documents before the respondent. The respondent is directed to complete the assessment proceedings within a period of eight (8) weeks from the date of receipt of a copy of this order.
4. In view of the above, this Writ Petition is allowed. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.