2023 (8) TMI 105 - HC - GST

Rectification of the assessment order - It is alleged that the petitioner under the guise of submitting rectification is seeking to re-do the entire assessment order which is not admissible - violation of principles of natural justice - HELD THAT - It is seen the petitioner filed a rectification petition under Section 161. Before filing the rectification petition, the petitioner collected all the records and filed the rectification petition along with the records. This would indicate that the petitioner was bonafide in seeking time to furnish all the records. If the petitioner has filed the rectification petition without any records, the claim of the respondent ought to be accepted, but in the present case it is for the genuine reason the petitioner has sought for adjournment. Therefore, this Court is of the considered opinion that the petitioner is entitled to one more opportunity. In the present case, the petitioner has submitted a rectification petition along with the records as well as pointed out several discrepancies such as the respondent has not granted ITC claim wherever it is applicable and imposed tax on the certain expenses. The petitioner has relied on the proviso to section 161 and submitted that before passing any orders under the section 161 then opportunity should be granted to the assessee - In the present case, while passing the rectification order, the respondent has not followed the proviso stated under Section 161. Therefore, this Court is also of the considered opinion that before passing the order under Section 161, the respondent should have followed the proviso and granted personal hearing to the petitioner. Therefore, while passing the rectification order there is violation of principles of natural justice. Since the tax liability is huge, the State cannot be made to suffer by the attitude of the petitioner as well. Therefore, in the interest of justice, the petitioner is directed to pay Rs. 1,00,000/- for each year. On such deposit, the respondent shall re-do the assessment - the impugned orders are set aside - Petition allowed.

Summary

Issues involved:
Challenging assessment order, rectification order, and consequential proceedings for multiple assessment years.

Assessment Proceedings:
- Petitioner is a manufacturer and trader of fireworks under TN GST Act, purchasing raw materials from registered dealers.
- Assistant Commissioner conducted statutory audit, issued show cause notice proposing tax, penalty, and interest under TNGST Act.
- Petitioner requested extensions to submit records due to medical leave of GST personnel, but orders were passed without granting sufficient time.
- Petitioner filed rectification petitions under Section 161, seeking to rectify errors in assessment order.

Court's Analysis:
- Court noted failure of authorities to consider adjournment requests and record them in assessment order.
- Recognized the need for petitioner to have additional opportunity to submit records due to voluminous transactions.
- Upheld petitioner's right to file rectification petition with supporting records, granting opportunity for correction under Section 161.
- Cited proviso to Section 161 requiring authorities to grant personal hearing before passing rectification order, which was not followed in this case.
- Set aside impugned orders, directing petitioner to pay specified amount for each year and allowing re-assessment within six weeks upon deposit.

Conclusion:
Writ petitions allowed, no costs imposed, connected miscellaneous petitions closed.