Case Law Details
Tvl. B.L. Collection Vs Deputy Commercial Tax Officer (Madras High Court)
Introduction: The case of Tvl. B.L. Collection vs. Deputy Commercial Tax Officer before the Madras High Court raises significant questions regarding the ability of a taxpayer to contest a GST demand in light of medical circumstances.
The petitioner, engaged in cloth and apparel trade, faced challenges in responding to a show cause notice and participating in proceedings due to a cancer diagnosis. Despite the petitioner’s inability to engage in the process, the tax proposal against them proceeded based on non-response. However, the petitioner, through legal representation, argued for an opportunity to explain discrepancies between their GSTR 3B returns and auto-populated GSTR 2A.
The Madras High Court, upon reviewing the case, found merit in the petitioner’s plea, emphasizing the principle of natural justice. Acknowledging the petitioner’s illness as a valid reason for non-participation, the court set aside the original order and remanded the matter for reconsideration. This decision highlights the court’s commitment to fairness, ensuring that individuals facing health challenges are not unfairly penalized.
As part of the remand, the court mandated a 10% pre-deposit of the disputed tax demand, demonstrating a balance between the interests of the taxpayer and revenue authorities. This requirement aims to safeguard revenue while affording the petitioner an opportunity to present their case effectively.
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