High Court overturns assessment order for violating natural justice under TNGST Act, 2017. The High Court set aside the assessment order for violation of natural justice principles under the TNGST Act, 2017. The court directed the relevant ...
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High Court overturns assessment order for violating natural justice under TNGST Act, 2017.
The High Court set aside the assessment order for violation of natural justice principles under the TNGST Act, 2017. The court directed the relevant statement and particulars relied upon by the Officer to be provided to the petitioner for review within three weeks. The petitioner was granted a hearing to present submissions and objections, with the Officer instructed to pass a speaking order within six weeks from the first hearing. The Writ Petition was disposed of without costs, and the connected Miscellaneous Petition was closed.
Issues: Violation of principles of natural justice in assessment order under TNGST Act, 2017
Detailed Analysis:
Issue 1: Violation of Principles of Natural Justice The petitioner challenged an assessment order dated 08.01.2021 under the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act, 2017) citing a violation of natural justice principles. The Assessing Officer noted discrepancies in invoices accompanied by e-way bills in a notice dated 29.05.2020. The petitioner responded on 23.12.2020 requesting a copy of the statement relied upon by the respondent. The Assessing Authority mentioned that the supplier admitted to not receiving any inward or engaging in outward supply in a statement recorded by the Central GST Authorities. The officer proposed that the transaction was not genuine, accusing the petitioner of bill trading. Despite the petitioner's request to see the statement recorded by the third party dealer and to cross-examine the dealer, the impugned order was passed without providing the statement to the petitioner or granting an opportunity to be heard.
Issue 2: Lack of Opportunity to Peruse Statement The assessment order's conclusion was based on the statement recorded by the third party dealer, which the petitioner was not allowed to peruse or object to. The court found that the petitioner should have been given the chance to review the statement and raise objections, as the failure to do so amounted to a violation of natural justice principles.
Judgment The High Court set aside the impugned order and directed that the statement and other relevant particulars relied upon by the Officer be provided to the petitioner within three weeks. Subsequently, the petitioner would be granted a hearing to present submissions and file objections. The Officer was instructed to pass a speaking order within six weeks from the date of the first hearing. The Writ Petition was disposed of with no costs, and the connected Miscellaneous Petition was closed.
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