KCP Infra Limited Vs State Tax Officer (Madras High Court)
The case of KCP Infra Limited vs. State Tax Officer involves three writ petitions challenging separate assessment orders dated February 29, 2024. The primary contention is the breach of principles of natural justice during the assessment proceedings under the Tamil Nadu Goods and Services Tax Act, 2017.
Background: In late January and early February 2023, an inspection was conducted under Section 67 of the Tamil Nadu Goods and Services Tax Act, 2017. During this inspection, a sworn statement was taken from Mr. V. Muthukumaran, the Accounts Executive of KCP Infra Limited. Fifteen discrepancies were identified, and the petitioner responded to each in a detailed reply dated February 15, 2023.
Key Discrepancies and Petitioner’s Response
- Input Tax Credit (ITC) Reversal: One major discrepancy (Discrepancy 11) involved the reversal of ITC due to non-payment within 180 days. The petitioner provided an ageing report for sundry creditors and claimed the right to ITC for delayed payments subject to interest.
- Turnover Inclusion: The petitioner argued that the turnover related to Andhra Pradesh was incorrectly included in the financial statements. They requested its exclusion in their response dated February 15, 2023, and submitted a trial balance showing the turnover from Tamil Nadu separately.
Proceedings and Orders: The 1st respondent issued an action on September 20, 2023, to which the petitioner replied on September 27, 2023, requesting an extension of time. Without granting this extension, a show cause notice was issued on November 10, 2023, followed by the impugned assessment orders on February 29, 2024.
