SEKAR REPORTER

Court News from Madras High Court

sekarreporter1: https://twitter.com/sekarreporter1/status/1607934274015203328?t=IDXW3YNYhSrq9a8HxRaq6A&s=08 [12/28, 08:30] sekarreporter1: *GLIMPSE OF A LATEST VERDICT* *Principal Additional Director General DGGI Chennai Zonal Unit And Another Vs Mutharamman & Co. And Another* *Writ Appeal No.3048 of 2021 and* *C.M.P.No.20990 of 2021* *HON’BLE MR. JUSTICES Mr.R.MAHADEVAN AND MOHAMMED SHAFFIQ* was pleased to modify the order passed by the Hon’ble Single Judge in respect of directions issued to the Department to the effect that the Department was at liberty to issue Show Cause Notice to the

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[12/28, 08:29] sekarreporter1: https://twitter.com/sekarreporter1/status/1607934274015203328?t=IDXW3YNYhSrq9a8HxRaq6A&s=08
[12/28, 08:30] sekarreporter1: *GLIMPSE OF A LATEST VERDICT*

*Principal Additional Director General DGGI Chennai Zonal Unit And Another Vs Mutharamman & Co. And Another*
*Writ Appeal No.3048 of 2021 and*
*C.M.P.No.20990 of 2021*

*HON’BLE MR. JUSTICES Mr.R.MAHADEVAN AND MOHAMMED SHAFFIQ* was pleased to modify the order passed by the Hon’ble Single Judge in respect of directions issued to the Department to the effect that the Department was at liberty to issue Show Cause Notice to the Assessee within a period of four weeks and on receipt thereof, the assessee shall file its objections and documentary evidence, if any, within a period of two weeks thereafter. On such filing, the Department shall examine it and pass an assessment order, on the merits, within a time-frame as stipulated in the Act and observed as follows:

1) The First Respondent is a dealer in scraps and an assessee under the Provisions of the Central Goods and Services Tax (CGST) Act, 2017. The Department found that there are certain financial irregularities by the First Respondent and tax evasion and in order to protect the interest of the Government Revenue, the Bank Account of the First Respondent was attached, invoking Section 83 of the Central Goods and Services Tax (CGST) Act, 2017. Against the same, the First Respondent filed a Writ Petition in W.P.No.32 of 2021 and the same was allowed by the Hon’ble Single Judge, by setting aside the order of attachment.

2) It is also observed by the Hon’ble Division Bench that the Hon’ble Single Judge, while setting aside the order of attachment has observed that the ‘opinion’ of the Second Appellant is far more cryptic revealing total non-application of mind and merely repeating what the First Appellant has stated in the request for sanction and accordingly, allowed the writ petition and directed the appellants to complete the process of assessment within a period of six weeks.

3) Without going into the merits of the order impugned herein, finds it appropriate to modify the order passed the Learned Single Judge (Mutharamman & Co. v. Principal Additional Director General, Directorate General of GST Intelligence(DCGI)(2022) 107 GSTR 102(Mad.), only in respect of the direction issued to the appellants. Accordingly, the order impugned herein is modified to the effect that the appellants are at liberty to issue show-cause notice to the first respondent within a period of four weeks from the date of receipt of a copy of this judgment and on receipt of the same, the first respondent shall file their objections and documentary evidence, if any, within a period of two weeks thereafter. On such filing, the appellants shall examine the same and pass assessment order, on merits, within a time frame, as stipulated in the CGST Act, 2017.

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