Coastal Plasto Chem Private Limited Vs State Tax Officer (Madras High Court)
The petitioner challenged an order dated 27.02.2025 passed for the tax period 2020–2021 before the Madras High Court. The impugned order followed a Show Cause Notice in GST DRC-01 dated 25.11.2024, to which the petitioner submitted a reply on 18.12.2024. The respondents had identified eight defects. Out of these, the proposed demand relating to six defects was dropped, while the demand in respect of two defects was confirmed in the impugned order.
The petitioner contended that the impugned order was a non-speaking order, stating that an amount of ₹47,03,033 paid in cash and adjusted under the declaration of output tax had not been allowed to be set off against the tax liability arising from an alleged excess claim of Input Tax Credit.
The respondents submitted that the petitioner’s reply addressed only the tax liability of ₹4,39,855 each towards CGST and IGST and did not respond to the alleged excess Input Tax Credit availed on IGST amounting to ₹64,42,805. It was also submitted that there was no error in the interest calculation in the impugned order.
During the hearing, the petitioner expressed willingness to deposit 25% of the disputed tax and file an appeal before the Appellate Authority. The Court disposed of the writ petition granting liberty to file a statutory appeal within thirty days with a 25% pre-deposit, directing the Appellate Authority to decide the appeal on merits without reference to limitation.
