Case Law Details
Tvl. Annai Packs Vs State Tax Officer (Madras High Court)
The case of Tvl. Annai Packs vs State Tax Officer presented a significant issue before the Madras High Court concerning the boundaries of tax orders and show cause notices (SCN) under GST law. The petitioner, Tvl. Annai Packs, challenged an order dated December 28, 2023, arguing it extended beyond the issues raised in the original SCN.
Background of the Case: The controversy began with a notice in Form ASMT issued on November 30, 2022, followed by an intimation on April 28, 2023. Subsequently, a show cause notice dated August 12, 2023, required Tvl. Annai Packs to explain a discrepancy of Rs. 2063/- between their GSTR-3B returns and the auto-populated GSTR-2A. The petitioner complied and paid the specified amount. However, the impugned order dated December 28, 2023, not only reaffirmed the excess ITC claim but also introduced a new liability concerning discrepancies in the turnover reported in the annual return. This additional liability was not mentioned in the original SCN, leading the petitioner to contest the order.
Petitioner’s Argument: The petitioner, represented by their counsel, argued that the impugned order was unsustainable because it introduced a new defect (defect no. 2) that was not part of the initial SCN. According to the petitioner, this violated the principles of natural justice, as they were not given an opportunity to respond to the new allegation before the liability was imposed.
Respondent’s Argument: The Additional Government Pleader, representing the respondent, acknowledged the petitioner’s payment towards the first defect. However, regarding the second defect, the respondent suggested treating the impugned order as a fresh SCN. This approach would allow the petitioner to respond to the new liability claim, thereby ensuring due process.
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