Petitioner granted 30 days to appeal with conditions; recovery stayed temporarily; case disposed without costs.

The HC granted partial relief to the petitioner by allowing them to file a statutory appeal before the Appellate Authority within 30 days, contingent upon pre-depositing the required amount. The Appellate Authority was instructed to adjudicate the appeal on its merits. Recovery proceedings were stayed for four weeks. The Writ Petition was disposed of without costs, and the connected Miscellaneous Petition was closed.

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Issues involved: Challenge to order u/s 74 of TNVAT Act, 2017 without proper hearing, reliance on incorrect income tax return, lack of rectification order u/s 154 of Income Tax Act, 1961, opportunity for statutory appeal u/s 107 of TNGST Act, 2017.

Summary:
The petitioner challenged an order dated 30.12.2022 passed u/s 74 of the TNVAT Act, 2017, without enclosing the detailed order initially. The petitioner claimed that the incorrect income tax return filed by an auditor led to the impugned order without proper hearing. The petitioner referred to relevant case laws and argued that assessment based on income tax returns is impermissible under TNGST Act, 2017. The petitioner also cited a recent decision setting aside an order for similar reasons. The Court considered arguments from both sides.

The Court noted that the petitioner had initiated proceedings to rectify the income tax return but had not obtained an order to rectify it. The petitioner's claim of lack of personal hearing was refuted as notices were issued, and the petitioner did not appear. The Court emphasized the importance of obtaining a rectification order under the Income Tax Act, 1961. The petitioner's ongoing proceedings for rectification were highlighted, indicating that participation in the hearing would have been futile without a rectification order.

A partial relief was granted to the petitioner, allowing them to file a statutory appeal before the Appellate Authority within 30 days, subject to pre-depositing the required amount. The Appellate Authority was directed to entertain and dispose of the appeal on merits and in accordance with the law. Recovery proceedings were ordered to be kept in abeyance for four weeks from the date of the order. The Writ Petition was disposed of without costs, and the connected Miscellaneous Petition was closed.

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