GST demand order confirmed without reply to show cause notice was challenged. Court quashed it, directed petitioner to pay 10% of disputed tax additionally, gave fresh opportunity to reply within 30 days, ordered de-freezing of bank account, and directed a fresh speaking order within 60 days after hearing.
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W.P.(MD) No.9988 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 24.04.2024
CORAM:
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.(MD) No.9988 of 2024 and W.M.P.(MD) Nos.9035 and 9037 of 2024
Alagar
... Petitioner
/vs./
Cantonment, Trichy 620 001.
2.The Branch Manager, Union Bank of India, Trichy Cantonment (555280), No.16, Williams Road, Kalairangam Complex, Contonment, Trichy 611 001.
... Respondents
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PRAYER:
W.P.(MD) No.9988 of 2024
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, calling for the records of the impugned order passed by the 1st respondent in Order-in-Original No.299/2022ST in file No. C.No.IV/19/200/2021-ST ADJN, dated 11.11.2022 , and quash the same as it is in gross violation of principles of natural justice, judicial discipline, is arbitrary, perverse and violate of Articles 14 and 19(1)(g) of the Constitution and consequently direct the 2nd Respondent to defreeze the petitioner's Account No. 333902010098632.
For Petitioner : Mr.S.Muthuvenkatraman For R1 : Mr.R.Nandakumar Senior Standing Counsel
ORDER
Mr.R.Nandakumar, learned Senior Standing Counsel takes notice for the first respondent.
2.The petitioner has challenged the impugned Order in Original No. 29/2022-ST dated 11.11.2022 bearing Ref.C.No.IV/19/200/2021-ST ADJN.
3.By the impugned order, the first respondent has confirmed the demand proposed in the show cause notice bearing C.No.IV/19/06/2021-ST ADJN in
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DIN.No.20211059XN010061616A dated 20.10.2021. Operative portion of the impugned order reads as under:-
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4.Reading of the impugned order reveal that the petitioner has not replied to the show cause notice bearing C.No.IV/19/06/2021-ST ADJN in DIN.No. 20211059XN010061616A dated 20.10.2021. It is informed that the first
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respondent has also recovered a sum of Rs.2,77,700/- from the petitioner's bank account on 15.04.2024.
5.Be that as it may, the petitioner is directed to pay 10% of the disputed tax additionally over and above of Rs.2,77,700/-, which was purportedly recovered on 15.04.2024. The first respondent is directed to verify whether the aforesaid amount has been recovered from the petitioner’s account maintained with the second respondent bank. If so, the petitioner may be given a further opportunity of giving a reply within a period of 30 days from the date of receipt of a copy of this order. The impugned order, which stands quashed, shall be treated as corrigendum to the show cause notice bearing C.No.IV/19/06/2021-ST ADJN in DIN.No.20211059XN010061616A dated 20.10.2021 issued to the petitioner. The first respondent shall pass a speaking order on merits and in accordance with law within a period of 60 days thereafter. It is needless to state that the petitioner shall be heard before fresh order is passed. Subject to the petitioner paying 10% of the disputed tax, the bank account of the petitioner shall be de-freezed by the first respondent.
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6.The Writ Petition stands allowed, accordingly. No costs. Consequently, connected Miscellaneous Petitions are closed.
Index : Yes / No 24.04.2024 Internet : Yes / No mm
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C.SARAVANAN, J.
mm
W.P.(MD) No.9988 of 2024
24.04.2024
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1 issue framed by the court
Whether the ex parte Order-in-Original confirming GST demand and freezing the petitioner's bank account, passed without a reply to the show cause notice, should be quashed.
1 provisions across 1 enactments
Alagar
The Assistant Commissioner of GST and Central Excise, Trichy I Division
The Branch Manager, Union Bank of India, Trichy Cantonment
C.SARAVANAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
