D.G. Construction Vs Deputy Commercial Tax Officer (Madras High Court)
In the case of D.G. Construction Vs Deputy Commercial Tax Officer before the Madras High Court, the primary issue was the levy of GST due to a mismatch between the turnover reported in Form 26AS and Form GSTR 3B for the financial year 2017-18. The petitioner, D.G. Construction, contested an order issued by the Deputy Commercial Tax Officer on 28th December 2023, which demanded payment of the differential GST amount. The dispute arose when the petitioner failed to respond to a show-cause notice (SCN) issued through the GST portal in August 2023, claiming that their accountant, who had access to the GST portal, failed to inform them of the notice.
The petitioner argued that no physical copy of the SCN or the final order was served, leading to a lack of opportunity to present their case. The court agreed with the petitioner’s claim, finding that the principles of natural justice had been violated since no opportunity for a personal hearing was given. The court, acknowledging the petitioner’s partial payment of 20% of the disputed liability, set aside the earlier order and remanded the case to the adjudicating authority. The court also directed that the bank account, which had been frozen as part of recovery proceedings, be de-frozen, allowing the petitioner to submit a proper response and receive a fair hearing.
