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Case Details: Tvl. Bright Power Projects India Pvt. Ltd. Vs. The
Assistant Commissioner (ST) (FAC), Suramangalam Circle, Salem
Case No.: W.P.
No. 22357 of 2024
Date of Order: 13th
August 2024
Name of Court: High
Court of Judicature at Madras
Summary of the Case: The
petitioner, Tvl. Bright Power Projects India Pvt. Ltd., filed a writ petition
challenging an order by the Assistant Commissioner (ST), Suramangalam Circle,
and a consequential recovery notice. The issue stemmed from a discrepancy in
GSTR 2A and GSTR 3B, which the petitioner claimed was resolved with valid
evidence. The court set aside the impugned order due to the violation of
natural justice principles and remitted the matter for reconsideration.
Facts of the Case:
1. The respondents
alleged that there was a difference between the petitioner’s GSTR 2A and GSTR
3B, which they claimed was a violation of Section 16 of the TNGST/CGST Act,
2017.
2. The notices were
uploaded on the GST portal under the "View Additional Notices/Orders"
column, which the petitioner did not notice.
3. The petitioner became
aware of the proceedings only after a call from the bank regarding the
initiation of recovery action.
4. The impugned order was
passed without providing the petitioner an opportunity to be heard.
Submission by Petitioner:
The petitioner argued
that the entire communication was uploaded in the GST portal's "View
Additional Notices/Orders" column, which they did not notice. Therefore,
the proceedings and the order were conducted and passed without their
knowledge, constituting a violation of the principles of natural justice. The
petitioner also highlighted that the entire tax demand was recovered without
their awareness.
Submission by Respondent:
The respondent contended
that the notices and orders were properly uploaded on the GST portal, hence the
petitioner should not complain of a breach of natural justice. The respondent
also agreed to comply with any court order.
Findings and Judgement of
Court:
The court found that the
impugned order was passed without the petitioner being given a chance to
present their case, which was a clear violation of natural justice. The court
set aside the impugned order and the consequential recovery notice, and remitted
the matter back to the respondent for reconsideration.
Conclusion: The
court quashed the impugned order dated 29th December 2023 and the recovery
notice dated 17th May 2024. The petitioner was directed to file a reply within
two weeks, after which the respondents were to provide a personal hearing with
a 14-day notice and pass a fresh order on merits.
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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