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Case Summary : M/s Sri Murugan Traders Vs. The Commercial Tax
Officer, Harur Circle, Dharmapuri, Hosur
Case No.: W.P.
No. 22314 of 2024
Date of Order: 13th
August 2024
Name of Court: High
Court of Judicature at Madras
Summary of the Case: The
petitioner, M/s Sri Murugan Traders, challenged an order passed by the
Commercial Tax Officer concerning tax demand issues related to SIM card sales
for BSNL. The petitioner contended that a detailed reply had been submitted but
was not considered by the respondent, leading to an impugned order that
violated natural justice principles. The court set aside the order and remitted
the matter for reconsideration.
Facts of the Case:
1. The respondent issued
Form GST DRC-01 on 28th December 2023 for the financial year 2018-19, raising
two tax issues.
2. The petitioner
submitted a detailed reply on 10th April 2024, which was uploaded in the GST
portal on 12th April 2024.
3. The respondent passed
an order on 23rd April 2024, stating that the petitioner did not file any reply
and confirmed the demand.
Submission by Petitioner:
The petitioner argued
that their detailed reply, filed on 12th April 2024, was not considered by the
respondent. The impugned order was passed without granting an opportunity for a
personal hearing, as required under Section 75(4) of the CGST Act, leading to a
violation of natural justice.
Submission by Respondent:
The respondent
acknowledged that the petitioner had filed a reply but claimed that the
petitioner did not address the two specific defects raised. However, the
respondent expressed willingness to comply with any court order.
Findings and Judgement of
Court:
The court found that the
respondent passed a non-speaking order without considering the detailed reply
submitted by the petitioner. This was a violation of natural justice, and the
court set aside the impugned order. The case was remitted back to the respondent,
who was directed to consider the reply and pass a speaking order on merits.
Conclusion: The
court quashed the impugned order dated 23rd April 2024 and remitted the matter
to the respondent for reconsideration. The respondent was instructed to
consider the petitioner's reply and issue a speaking order in accordance with
the law.
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.
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