20.12.2023: Order Passed Without Serving Any Physical Notice – Section 169 – Madras High Court

MadrasThe Hon’ble High Court of Madras vide its order dated 29.08.2023 in the matter of TVL. Diamond Shipping Agencies Private Limited Vs. The Assistant Commissioner (ST), Tuticorin in W.P.(MD). No.  6874 of 2023 And W.M.P.(MD). Nos.  6426 and 6427 of 2023, quashed the order, which was passed without serving any physical notice under Section 169(1)(b) and without taking into account that the assessee is having three business verticals.

The Petitioner filed the writ petition before the Hon’ble High Court seeking quashing of Order dated 17.08.2022 for the assessment year 2017 -18 and also to direct the respondents to re-do the assessment.

Petitioner’s Submissions: –

  • It was submitted on the behalf of the petitioner that the assessment order passed is in violation of principles of natural justice. The Petitioner is having three business verticals of the same PAN, however, the order has been passed without considering the annual returns in GSTR – 9 and Auditor’s statement filed in GSTR – 9C for the said three business verticals. 
  • Therefore, it was submitted on the behalf of the petitioner that if an opportunity is granted, he would explain the same to the authorities. Moreover, the respondent without serving physical notice / order the impugned order is passed which is against the Section 169(1) (b) of the Act.

Held: –

  • The Hon’ble Court after considering the submissions made and facts of the case and the provisions of law applicable, found that the impugned order is passed without serving notice as per section 169(1)(b) and without taking into account that the petitioner is having three business verticals.
  • Therefore, the Hon’ble Court quashed the impugned order with the directions to the respondent to grant opportunity to the petitioner preferably grant personal hearing and thereafter pass orders. The petitioner shall produce all the evidences and documents before the respondent. The respondent is directed to complete the assessment proceedings within a period of eight (8) weeks from the date of receipt of a copy of this order.

The Hon’ble Court with the above findings and observations, allowed the writ petition.

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