Maruthi Trading Corporation, Rep by its Proprietor P.Chandran V. The Assistant Commissioner (CT), Theni-I Circle, Theni District, Theni and The Commissioner, Kodaikanal Municipality, Kodaikanal, Theni District

WP(MD)/24407/2023

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The case involves Tvl. Maruthi Trading Corporation, represented by its proprietor P. Chandran, who filed a writ petition challenging an assessment order issued by the Assistant Commissioner (CT), Theni-I Circle. The petitioner, a contractor responsible for the maintenance of street lights in Theni and Dindigul Districts, contested the reported turnover by the Kodaikanal Municipality, which was significantly higher than his reported turnover. The municipality acknowledged the error made by their tax consultant, leading to the court's decision to set aside the impugned order and direct a re-assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 687892 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 31-10-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: G V VAIRAM SANTHOSH; T S MOHAMMED MOHIDEEN
• Assessee Lawyers: RAJA KARTHIKEYAN
• Keywords: Assessment Order; Tax Consultant Error; Turnover mismatch; Writ of Certiorarified Mandamus; Street Light Maintenance
• Section: GSTIN.33ANAPC4782E1ZG/2020-21

Judgement Text

"W .P(MD)No.24407 of 2023 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 31.10.2023 CORAM: THE HONOURABLE MR.JUSTICE B.PUGALENDHI W.P(MD)No.24407 of 2023 and WMP(MD) No.20598 of 2023 Tvl.Maruthi Trading Corporation, Rep by its Proprietor P.Chandran, No.107-R/6, Sadayal Kovil Road, New Scheme Raod, Theni District, Theni – 625 531. Petitioner Vs 1.The Assistant Commissioner (CT), Theni-I Circle, Theni District, Theni. 2.The Commissioner, Kodaikanal Municipality, Kodaikanal, Theni District. Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, calling for the impugned assessment order on the file of 1/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 first respondent vide GSTIN.33ANAPC4782E1ZG/2020-21 dated 06.06.2023 and quash the same as illegal and devoid of merits and direct the respondent to re-do the assessment for the year 2020-21 after providing reasonable opportunity to the petitioner. For Petitioner : Mr.Raja.Karthikeyan For R1 : Mr.G.V.Vairam Santhosh Additional Government Pleader For R2 : Mr.T.S.Mohammed Mohideen Standing Counsel O R D E R This writ petition is filed as against the order passed by the Assistant Commissioner (CT), Theni-I Circle, Theni District/ the first respondent in GSTIN.33ANAPC4782E1ZG/2020-21 dated 06.06.2023 and for a consequential direction to the respondents to redo the assessment for the year 2020-2021 by providing an opportunity to the petitioner. 2.The case of the petitioner is that the petitioner is a registered contractor and he is doing service-maintenance of street lights in the Municipalities of Theni and Dindigul Districts. 2/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 According to the petitioner, when he claimed his reported turnover as Rs.62,92,708/- for the year 2020-2021, the second respondent/the Commissioner, Kodaikanal Municipality has wrongly reported the petitioner's turnover as Rs.2,62,45,600/-. Therefore, the petitioner has approached the Municipality authorities, who in turn, issued a fresh certificate. With that certificate, the petitioner now wants to submit an application afresh before the first respondent. In the meantime, the first respondent has passed the present impugned order, demanding Rs.77,50,180/- as turnover mismatch. Therefore, the petitioner has filed this writ petition challenging the impugned order and to direct the first respondent to re-do the assessment for the year 2020-21 after providing reasonable opportunity to the petitioner. 3.In response to this writ petition, the learned Standing Counsel appearing for the second respondent/Municipality has filed a counter affidavit that a mistake has been made by the tax consultant engaged by the respondent Municipality and the relevant 3/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 paragraphs are extracted from the counter affidavit. “3.The petitioner is a registered contractor holding the contracts relating to street light maintenance in the municipality. The petitioner in the year 2020-2021 has reported transaction with respondent municipality tuning Rs.62,92,708/-. After deducting income tax for Rs.1,17,223/- manual welfare fund Rs.58,796/- and GST Rs.4,61,469/- the amount payable to the contractor comes around Rs.56,55,210/-. 4.The petitioner in the year 2021-2022 has reported transaction with respondent Municipality tuning Rs.1,09,10,226/-. After deducting income tax for Rs.2,10,673/- manual welfare fund Rs.1,05,334/- and GST Rs.5,24,193/- the amount payable to the contractor comes around Rs.1,00,69,306/- 5.Mistakenly Taxation consultant, who was authrized by the Municipality has reported to the first respondent as if the petitioner has executed maintenance work to the tune of Rs.2,62,45,600/- and Rs.2,30,73,400/-. Thus, admittedly this mistake 4/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 has taken place by the assisting authority, which has resulted in the impugned order passed by the first respondent. Thus, by recording the statement of Municipality, order impugned has to be modified by the first respondent.” 4.In view of the counter filed by the second respondent/Municipality, this writ petition is allowed. The impugned order passed by the first respondent in GSTIN. 33ANAPC4782E1ZG/2020-21 dated 06.06.2023 is set aside and the first respondent shall redo the assessment for the year 2020-21 with fresh certificates, which has been issued by the second respondent and by providing an opportunity of hearing to the petitioner. No costs. Consequently, connected Miscellaneous Petition is closed. 31.10.2023 (1/2) NCC: Yes/No Index:Yes/No Internet:Yes vrn 5/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 To 1.The Assistant Commissioner (CT), Theni-I Circle, Theni District, Theni. 2.The Commissioner, Kodaikanal Municipality, Kodaikanal, Theni District. 6/7 https://www.mhc.tn.gov.in/judis W .P(MD)No.24407 of 2023 B.PUGALENDHI, J. vrn Order made in W.P(MD)No.24407 of 2023 and WMP(MD) No.20598 of 2023 31.10.2023 (1/2) 7/7 https://www.mhc.tn.gov.in/judis "