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2024 Supreme(Online)(MAD) 18933
HIGH COURT OF MADRAS
Honourable Mr Justice KRISHNAN RAMASAMY
Nandha And Kiran Traders – Appellant
Versus
Deputy State Tax Officer – Respondent
A party must be physically served summons to ensure adherence to natural justice when challenging tax assessments.
Headnote:
Tax - Writ Petition - TNGST Act Section List - The court addressed the lack of proper service of summons as required by Section 169 of the TNGST Act and emphasized the importance of adhering to principles of natural justice, resulting in the remand of the case for reconsideration.
Fact of the Case:
The petitioner, engaged in chip manufacturing and paying taxes under the Composition Scheme, challenged an assessment order issued by the respondent following an inspection. The summons were not served physically, leading to the petitioner's absence at the scheduled hearing.
Finding of the Court:
The court found that appropriate service under Section 169 of the TNGST Act was not followed, violating natural justice principles. The court set aside the assessment order and remanded the matter for reconsideration, subject to conditions.
Issues: Whether the non-physical service of summons and assessment order violated principles of natural justice.
Ratio Decidendi: Proper service of summons is crucial for compliance with natural justice; failure to do so renders proceedings invalid.
Final Decision: The court set aside the order and remanded the matter for reconsideration.
O R D E R
Challenge in this writ petition is made to the assessment order dated
03.01.2024 passed by the respondent.
2. The learned counsel appearing for the petitioner submitted that the petitioner is in the business of manufacturing chips and has been paying taxes under the Composition Scheme periodically. While so, the petitioner was informed by his auditor that the respondent has initiated proceedings under Section 74 of the TNGST Act , pursuant to an inspection which was conducted on 20.04.2022. Further, a summon was issued to the petitioner for his appearance before the respondent on 15.07.2022, followed by three reminders. Since the same were not served on the petitioner as required under Section 169 of the TNGST Act , he did not appear. Thereafter, the respondent passed the order dated 03.01.2024, directing the petitioner to make payment, is in violation of principles of natural justice. Though the summons and the order dated 03.01.2024, were uploaded by the respondent in the GST web portal under the head “view additional notices & orders”, the petitioner skipped to view the same. The learned counsel further submitted that the petitioner is willing to deposit 10% of the disputed tax demand. Hence, the order passed by the respondent may be set aside.
3. The learned Government Advocate appearing for the respondent submitted that that the summons and the order dated 03.01.2024 passed by the respondent were uploaded in the GST web portal and therefore, the fault is only on the part of the petitioner.
4. Heard the learned counsel for the petitioner and the learned Government Advocate appearing for the respondent and perused the materials placed before this Court.
5. Considering the submission made by the learned counsel for the petitioner that the summons and the order were not served on the petitioner physically, this Court is inclined to set aside the order dated 03.01.2024 passed by the respondent and accordingly, the same is set aside and the matter is remanded for reconsideration by the respondent, subject to the following conditions :
i. The petitioner shall deposit 10% of the disputed tax demand, within a period of four (4) weeks from the date of receipt of a copy of this order.
ii. Thereafter, the petitioner shall file a reply, within a period of two (2) weeks. After receipt of the reply, the respondent shall fix a date for personal hearing by sending a physical notice to the petitioner and thereafter, pass orders on merits and in accordance with law.
With the above directions, this writ petition is disposed of. No costs.
Connected W.M.P.s are closed.
14.08.2024 gya Index : Yes/No Neutral Citation : Yes/No KRISHNAN RAMASAMY, J.
gya To The Deputy Commercial Tax Officer Vepery North III – Chennai Office of the Deputy Commercial Tax Officer Vepery North III, Chennai North W.P.No.22809 of 2024
14.08.2024
