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Case Details: Tvl Kaliappa Indane Gas Agencies vs. The State Tax
Officer (ST)
Case No.: W.P.No.21932
of 2024
Date of Order: 13th
August 2024
Court: High
Court of Madras
Presiding Judge: Honourable
Mr Justice Krishnan Ramasamy
Summary of the Case:
Tvl.Kaliappa Indane Gas Agencies filed a writ petition
seeking to quash the order passed by the State Tax Officer, Pollachi Rural
Assessment Circle, for wrongly availing Input Tax Credit (ITC) on the purchase
of a motor vehicle. The petitioner claimed that they were not given a fair
opportunity to contest the charges due to lack of access to the GST portal. The
High Court found that the petitioner was denied natural justice and directed
the appellate authority to condone the delay and reconsider the appeal.
Facts of the Case:
· The
petitioner, Tvl.Kaliappa Indane Gas Agencies, challenged the order passed by
the State Tax Officer on 16th October 2023, which demanded tax of ₹2,51,054,
interest of ₹58,437, and a penalty of ₹2,51,054 for wrongly availing ITC on the
purchase of a motor vehicle.
· The
petitioner received an intimation under GST DRC-01A, dated 7th August 2023,
followed by a notice in GST DRC 01, dated 25th March 2023, but could not
respond due to lack of knowledge and access to the GST portal.
· On
10th October 2023, the petitioner reversed the credit of ₹2,51,054 and paid
interest of ₹18,128. However, the respondent confirmed the proposed tax,
interest, and penalty in their order dated 16th October 2023.
· The
petitioner filed an appeal with a 25-day delay, which was dismissed by the
appellate authority on the grounds of being barred by limitation.
Submission by Petitioner:
The petitioner argued that the impugned order was
passed without giving them an opportunity to present their case, thereby
violating the principles of natural justice.
The petitioner also contended that the delay in filing
the appeal was due to genuine reasons, as they had no access to the portal to
view the notices and orders.
Submission by Respondent:
· The
respondent’s counsel submitted that they would comply with any order passed by
the court.
Findings and Judgement of the Court:
· The
court found that the petitioner was not afforded an opportunity to present
their case before the authorities, which violated the principles of natural
justice.
· Considering
the genuine reasons for the delay in filing the appeal and the fact that the
petitioner had already paid the entire tax amount, the court condoned the delay
of 25 days in filing the appeal.
· The
court directed the respondent to take the appeal on record and pass orders on
merits in accordance with the law.
Conclusion: The
writ petition was disposed of with the court quashing the impugned order and
remanding the matter back to the appellate authority. The court directed the
respondent to consider the appeal afresh after providing a fair hearing to the
petitioner.
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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