Tvl. Noyyal Common Effluent Treatment Company Limited Vs Assistant Commissioner (ST) (Madras High Court)
The writ petition formed part of a batch of 250 writ petitions, including 53 petitions finally heard on the larger issue concerning challenges to proceedings under Section 74 of the respective GST enactments. The Court referred to its common order passed the same day in Turbo Energy Private Limited, Fastenex Private Limited, and Ispahani Estates Private Limited, which dealt in detail with the invocation of the extended period of limitation under Section 74.
The petitioner challenged the impugned order dated 31.05.2024, by which the proposal contained in the Show Cause Notice in GST DRC-01 dated 28.03.2024 was confirmed. Under the impugned order, interest of ₹72,25,154 was imposed on account of belated payment of tax for the tax period 2017–2018.
The petitioner had earlier received an Intimation in GST DRC-01A dated 28.07.2020. Pursuant to that intimation, the petitioner paid differential tax through multiple DRC-03 filings between 26.11.2020 and 11.01.2022. According to the petitioner, tax had originally been discharged at 5%, and after being informed by the department that tax was payable at 18%, the differential tax was paid. The petitioner contended that the tax was promptly paid after the departmental intimation and therefore the proceedings initiated under Section 74 and confirmed by the impugned order lacked merit. It was further submitted that the incorrect invocation of Section 74 deprived the petitioner of the benefit of amnesty under Section 128-A and the relevant notification.
