Jai Maa Engineering Co. Vs State Tax Officer (Madras High Court)
In Jai Maa Engineering Co. vs. State Tax Officer, the Madras High Court addressed a challenge to a GST order dated August 25, 2023, which had confirmed a tax demand due to the petitioner’s lack of response. The petitioner argued that they were unaware of the proceedings because communications were only posted on the GST portal, and they only became aware when their bank account was attached in February 2024. The petitioner claimed there was no actual mismatch between their GSTR-3B returns and the auto-populated GSTR-2A and agreed to remit 10% of the disputed tax amount as a condition for reconsideration. The Court found that the petitioner had not been given a proper opportunity to contest the demand, thus directing that the impugned order be set aside. The matter was remanded for reconsideration, with the petitioner required to submit a reply to the show cause notice and make the payment within 15 days. The Court also ordered the lifting of the bank attachment and instructed that a fresh order be issued within three months after receiving the petitioner’s reply.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order in original dated 25.08.2023 is assailed on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits.
