Assessment Order Passed Without Serving DRC-1A Was Set Aside with Direction to Provide Personal Hearing | HC

Case Details: Tvl. Srirenukambal Milk Centre v. State Tax Officer - [2024] 169 taxmann.com 91 (Madras)

Judiciary and Counsel Details

• Krishnan Ramasamy, J.
• Ms R. Hemalatha for the Petitioner.
• T.N.C. Kaushik, Addl. Govt. Pleader (Taxes) for the Respondent.

Facts of the Case

The assessee filed monthly GSTR-1 and GSTR-3B returns for the Assessment year 2018-19. However, it failed to file the Annual return in Form GSTR-9 and GSTR-9C under Section 44 of the TNGST Act 2017. The department passed an assessment order under Section 73 without issuing mandatory Form GST DRC-01A and imposed contradictory late fee demands of Rs. 2,12,800 in order vs Rs. 7,93,626 in annexure. It filed writ petition and contended that no opportunity for a personal hearing was provided.

High Court Held

The Madras High Court held that the assessment order was passed without following the mandatory procedure and principles of natural justice. The impugned order was set aside and the matter was remanded with directions to provide the opportunity to file a reply/objections and personal hearing after the assessee pays 10% of the disputed tax amount within 4 weeks. The Court also directed that fresh orders to be passed after considering the assessee’s submissions on payment of 10% of disputed tax amount within 4 weeks.

List of Cases Reviewed

• Skyline Automation Industries v. State of U.P. And Another (Allahabad High Court) – [Para 4] followed.