Name: Trans Car India Private Limited vs. GST
Authorities
Court: High Court of Judicature at Madras:
Case
Details: W.A.No.3497 of 2023
Date: 19.12.2023
Facts
of the Case:
Trans Car India Private Limited, represented
by its General Manager (Legal Affairs), Mr. Vijaya Raghavan, is the appellant
in this case. The appellant challenged an order passed by the Additional
Commissioner, GST – Chennai South Commissionerate, which imposed a penalty and
interest under the CGST Act, 2017, SGST Act, 2017, and IGST Act, 2017. The
Order-in-Original No. 25 of 2023 (DGGI) dated 31.05.2023, was issued without
considering the submissions raised by the appellant during a virtual hearing,
leading to allegations of arbitrary action and lack of jurisdiction.
The appellant filed a writ petition (W.P. No.
27678 of 2023) in the Madras High Court, which was disposed of by the learned
Judge on 22.09.2023. The learned Judge granted the appellant the liberty to
challenge the impugned order within thirty days and directed the appellant to
deposit 10% of the disputed amount (Rs. 14,88,370/-) as a pre-deposit along
with the appeal.
Submissions
by the Petitioner:
The appellant, Trans Car India Private
Limited, argued that the first respondent (Additional Commissioner, GST –
Chennai South Commissionerate) passed the Order-in-Original without properly
considering the submissions made by the appellant. The appellant contended that
the order was arbitrary and lacked jurisdiction. The appellant further
challenged the imposition of penalty and interest, asserting that the procedure
adopted by the first respondent was flawed and did not adhere to the principles
of natural justice.
Submissions
by the Respondents:
The respondents, represented by the Additional
Commissioner, GST – Chennai South Commissionerate, and the Additional
Directorate, DGGI, Chennai Zonal Unit, maintained that the order was passed
following due process. They argued that the appellant had been given a fair
opportunity to present its case during the virtual hearing. The respondents
contended that the imposition of penalty and interest was justified and in
accordance with the provisions of the CGST Act, SGST Act, and IGST Act.
Judgment:
The High Court, comprising Honourable Mr.
Justice R. Mahadevan and Honourable Mr. Justice Mohammed Shaffiq, reviewed the
case and the submissions made by both parties. The court noted that the learned
Judge in the writ petition had already disposed of the matter with specific
directions, including granting the appellant liberty to challenge the impugned
order within thirty days and directing a 10% pre-deposit of the disputed
amount.
In light of the submissions and the existing
directions, the court extended the time limit for filing the appeal and making
the pre-deposit by a further period of eight weeks from the date of the
judgment (19.12.2023). The court directed the appellant to file the appeal
before the first respondent along with the required pre-deposit within this
extended period. The court also instructed the first respondent to consider the
appeal on merits, without raising any issues related to limitation, and to pass
an appropriate order in accordance with the law after affording an opportunity
of hearing to the appellant.
The court disposed of the writ appeal with
these directions, ensuring that the appellant had an extended opportunity to
contest the impugned order while adhering to procedural requirements.
Consequently, the connected miscellaneous petitions were closed, and the
Registry was directed to return the original copy of the Order-in-Original to
the appellant after substituting a copy.
Conclusion:
The judgment provided relief to Trans Car
India Private Limited by extending the time limit for filing an appeal and
making the pre-deposit. The court's directive ensured that the appellant could
challenge the order on its merits, thus upholding the principles of natural
justice and fair play. This case underscores the importance of procedural
compliance and the judiciary's role in ensuring equitable treatment in
tax-related disputes.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
