KPR Concrete Readymix Vs STO (Madras High Court)
Introduction: The recent decision by the Madras High Court in the case of KPR Concrete Readymix vs. State Tax Officer (STO) has significant implications for the classification of services under GST. The dispute revolves around the SAC, GST rates, and the issuance of notices challenging the classification by the State Tax Officer.
The Hon’ble Madras High Court in the case of KPR Concrete Readymix v. State Tax Officer [Writ Petition Nos. 35949, 35953 of 2023 January 08, 2024] held that the dispute revolves around the classification of services, which does not fall within the limited category of cases in which a Show Cause Notice may be assailed in proceeding under Article 226 of the Constitution of India. Therefore, the Court decided not to interfere with the Impugned Notice.
Facts:
KPR Concrete Readymix (“the Petitioner”) is engaged in providing transportation services to customers. The Petitioner classified its services under the Service Accounting Code (“SAC”) 996511 and paid a GST rate of 12% on such services. The State Tax Officer (“the Respondent”) issued a notice in FORM DRC-01A, alleging short payment of tax on the services provided by the Petitioner should be classified under SAC 996601, which attracts a GST rate of 18%.
The Petitioner contended that its services are classifiable under SAC 996511 and provided relevant documents and consignment notes. The Respondent did not consider the reply of the Petitioner and issued a notice in FORM DRC-01 (“the Impugned Notice”).
Hence, aggrieved by the Impugned Notice the present writ petition was filed by the Petitioner.
Issue:
Whether dispute revolving around the classification of services provided by the Assessee can be the subject matter of the writ petition?
Held:
The Madras High Court in Writ Petition Nos. 35949, 35953 of 2023 held as under:
