Chendur Murugan Ginning Factory Vs State Tax Officer (FAC) (Madras High Court)
The Madras High Court disposed of a writ petition challenging an order dated 14.11.2024 passed under Section 161 of the respective GST enactments. The impugned order rectified an earlier order dated 26.12.2023 by making minor corrections regarding the place of supply of goods, changing it from Tamil Nadu to Karnataka.
The demand confirmed under the order dated 26.12.2023, as rectified, related to the tax period July 2017 to March 2018. The total tax demand amounted to Rs. 13,57,041/-, with no interest, and penalties aggregating to Rs. 9,47,428/-, making the total demand Rs. 23,04,469/-. The petitioner contended that out of the total tax liability of Rs. 13,57,041/-, an amount of Rs. 8,05,443/- had already been reversed partly in the GSTR-3B return filed for the tax period 2018–2019. The petitioner confined the challenge to the extent of Rs. 4,51,596/-.
However, the learned Government Advocate was unable to confirm the petitioner’s claim regarding the reversal, and the Court observed that the matter required detailed consideration. Following its consistent approach in similar cases, the Court remitted the matter back to the respondent for fresh adjudication on merits.
The remand was made subject to specific conditions. The petitioner was directed to deposit 100% of the admitted tax demand in cash, as confirmed by the order dated 26.12.2023, along with interest and penalty, from the Electronic Cash Register within 30 days from receipt of the Court’s order. Additionally, the petitioner was required to deposit 100% of the disputed tax liability of Rs. 4,51,596/- within the same time.
