Palani Ilanthirayan Vs Deputy Commercial Tax Officer (Madras High Court)
The writ petition before the Madras High Court challenged four separate orders passed under Sections 73 and 74 of the GST enactments for the tax period 2019–2020. These orders arose from different show cause notices and resulted in varied demands, including penalties, tax, and interest. In one order dated 28 August 2024, a general penalty of ₹50,000 was imposed for delayed filing of returns without levying late fees under Section 47. The Court found no infirmity in this order and dismissed the challenge to it, holding that it did not warrant interference, especially since the writ petition was filed more than a year later.
With respect to the remaining three orders dated 22 August 2024, 24 August 2024, and 28 August 2024, the Court noted that the petitioner had failed to file replies to the respective show cause notices in Form GST DRC-01, resulting in adverse assessment orders. The petitioner expressed willingness to deposit 50% of the disputed tax amounts and sought remand of these matters. Recording this submission, the Court quashed the three assessment orders and remitted the cases back to the tax authority for fresh consideration on merits, subject to the petitioner depositing 50% of the disputed tax and interest.
