Tvl. Gopal Vinod Granites Vs State Tax Officer (FAC)
Date: July 20, 2025
Subject Matter
GST Order Issued in Wrong Name set-aside
Summary
A writ petition was filed challenging a GST order dated January 23, 2024. The petitioner's counsel argued that the petitioner was not aware of the preceding show cause notice, which was only uploaded to the GST portal and not physically served. This lack of awareness led to the petitioner's failure to respond, resulting in an ex parte order. The counsel further highlighted a significant error in the impugned order: it was issued in the name of a wrong entity, "M/s. Balaji Granites Industries," even though the GSTIN number was correct and belonged to the petitioner. The petitioner argued that this error, along with the lack of a hearing, constituted a violation of the principles of natural justice.
The learned Government Advocate for the respondent conceded that the assessment order was inadvertently passed in the wrong name, but confirmed that the GSTIN number was correct and pertained to the petitioner. She requested that the matter be remanded for reconsideration.
The court noted that the show cause notice was issued in the petitioner's name, but the subsequent order was in the wrong name. The court concluded that this demonstrated a clear "non application" of mind by the respondent and that an order against a wrong entity cannot be sustained.
The court set aside the impugned order dated January 23, 2024, and remanded the matter back to the respondent for fresh consideration. The petitioner is directed to file a reply with supporting documents within four weeks. The respondent is then ordered to provide a clear 14-day notice for a personal hearing and to decide the matter in accordance with the law. The writ petition was disposed of with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Ms.P.Selvi, learned Government Advocate (Taxes) takes notice for the respondents. With consent, the main Writ Petition is taken up for final disposal at the stage of admission itself.
2. The challenge in this Writ Petition is to the order dated 23.01.2024 passed by the 2nd respondent and to quash the same.
3. The learned counsel for the petitioner would submit that the respondent has issued a show cause notice on 16.12.2023 to the petitioner by uploading the same in the GST portal, without serving the physical copy of the same to the petitioner. Therefore, the petitioner was not aware of the same and failed to submit its reply. Since the petitioner failed to file reply to the said show cause notice, the respondent has confirmed the proposals contained in the show cause notice and passed the present impugned order.
The petitioner came to know of the impugned order belatedly. Thereafter, on verification, the petitioner found that in the impugned order was issued wrongly in the name of M/s.Balaji Granites Industries. Further, he would submit that the GSTIN Number mentioned in the impugned order pertains to that of the petitioner. He further submitted that the impugned order suffers from violation of principles of natural justice and is liable to be aside, as the petitioner has not been heard before passing the impugned order.
4. The learned Government Advocate (Taxes) for the respondent fairly submitted that though the show cause notice was issued in the petitioner, inadvertently the petitioner’s name was wrongly mentioned in the assessment order as M/s.Balaji Granites Industries. He further submitted that GSTIN number mentioned in the assessment order pertains to that of the petitioner. She therefore prays to remand the matter back to the respondent for reconsideration.
5. Considering the above submissions made by the learned counsel on either side and upon perusal of the materials, it is evident that though the show cause notice was issue in the name of the petitioner, impugned order was wrongly passed in the name of M/s.Balaji Granites Industries with GSTIN number of the petitioner.
6. In view of the same, this Court is of the view that with non application the respondent passed the impugned order and any order passed by the respondent against wrong person or wrong entity is not sustainable. Therefore, this Court is inclined to set aside the impugned order dated 23.01.2024. passed by the respondent. Accordingly, this Court passes the following order:
i) The impugned order passed by the respondent dated 23.01.2024 is set aside.
ii) Consequently, the matter is remanded to the respondent for fresh consideration.
iii) Thereafter, the petitioner is directed to file a reply along with supportive documents within a period of four weeks.
iv) Thereupon, the respondent is directed to consider the reply and shall issue a clear 14 days notice affording an opportunity of personal hearing to the petitioner and shall decide the matter in accordance with law.
7. With the above observations & directions, this Writ Petition is disposed of. No costs. Consequently, connected Miscellaneous Petitions are closed.