Tvl. International Construction Co. Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court remitted the matter of imposition of GST on entire differential turnover since petitioner failed to participate in the proceedings and petitioner has deposited 10% of the disputed tax demand.
Facts- An order in original dated 16.04.2024 is challenged in this writ on on the ground that the petitioner did not have a reasonable opportunity to contest the tax demand on merits. The petitioner asserts that the business is carried on in multiple States such as Maharashtra, Andhra Pradesh, Gujarat, Odisha, Chhattisgarh and Tamil Nadu. During the relevant period 2018-2019, it is stated that the petitioner did not effect substantial taxable supplies in Tamil Nadu. Consequently, it is stated that the petitioner did not monitor the GST portal and, therefore, failed to reply to the show cause notice. The impugned order dated 16.04.2024 was issued in these facts and circumstances.
Conclusion- Held that it appears prima facie that the imposition of GST on the entire differential turnover does not appear tenable. However, these aspects are required to be verified by the assessing officer on closely examining all relevant documents. The other discrepancies based on the difference between the GSTR returns and the financial statements may also require reconsideration since the financial mints appear to be prima facie prepared on All India basis. Since the petitioner failed to participate in proceedings in spite of being provided several opportunities, it is just and necessary to put the petitioner on terms.
