KPR Enterprises Vs State Tax Officer (Madras High Court)
The Madras High Court dismissed three writ petitions filed by KPR Enterprises challenging orders dated 15.07.2024 for the tax periods 2018-2019, 2019-2020, and 2020-2021, while granting liberty to file statutory appeals before the appellate authority.
The impugned orders were preceded by Intimation Notices in Form GST DRC-01A dated 20.03.2024, to which the petitioner replied on 23.03.2024, followed by Show Cause Notices in Form GST DRC-01 dated 02.04.2024, to which replies were submitted on 25.06.2024. The final orders were passed in Form GST DRC-07 on 15.07.2024.
The petitioner contended that it was unable to continue its business and had entered into an arrangement with one B.T. Nagaraj Reddy, who extracted rock boulders from the site. According to the petitioner, the price was fixed based on provisional advice or consultations and GST was duly discharged. It was argued that the inspection conducted in March 2024 did not reveal any incriminating material, yet DRC-01A intimations and DRC-01 notices were issued.
The petitioner further submitted that the impugned orders did not contain findings regarding fraud, wilful misstatement, or suppression of facts. It was also argued that only rock boulders, which were not capable of being measured in the manner alleged, had been sold and that the contractor who extracted and sold the boulders had discharged the applicable GST liability. On that basis, the petitioner contended that there was no loss to the revenue.
