In W.P.(MD) Nos.13248 of 2023 -MADR HC- Non-speaking order by State Tax Officer lacked application of mind, matter remitted for fresh consideration: Madras High Court
Justice P.T. Asha [08-06-2023]

Read Order: Tvl. Matha Steels v. The State Tax Officer

Chahat Varma

New Delhi, June 21, 2023: The Madurai Bench of Madras High Court has held that despite Tvl. Matha Steels (petitioner) submitting the relevant documents, the State Tax Officer (the respondent) failed to acknowledge or refer to them and therefore, the respondent’s decision was a non-speaking one and there was an absolute non-application of mind on the part of the respondent.

Factual background of the case was that the petitioner, a dealer in ferrous scraps, had their place of business inspected by the intelligent wing officials. During the inspection, the inspecting officers alleged various defects in the calculation of tax and other amounts. The petitioner was asked to make the payment, which they refused and they had sought time for making their explanation. The petitioner contended that the tax demand was determined without verifying their books of accounts and other documents and without granting them an opportunity to present their case. The inspecting officers and the State Tax Officer (respondent) proceeded to pass orders without considering the documents submitted by the petitioner.

The single-judge bench of Justice P.T. Asha observed that the respondent had stated that no documentary evidence had been produced, completely disregarding the objections raised by the petitioner and the documents uploaded in FORM DRC-06. The bench found that the respondent's decision lacked proper reasoning, as it did not address the submitted documents or considered the objections raised by the petitioner.

Therefore, the court allowed the writ petitions filed by the petitioner and set aside the impugned orders, passed by the respondent. The matters were remitted back to the respondent for fresh consideration.