BK & K Chemicals Private Limited Vs Assistant Commissioner (ST) (Madras High Court)
In the case of BK & K Chemicals Private Limited Vs Assistant Commissioner (ST), the Madras High Court addressed the petitioner’s challenge to an original order dated 29.12.2023 and the rejection of a subsequent rectification application. The original order, issued following a show cause notice on 27.09.2023 and the petitioner’s reply on 20.12.2023, accepted explanations for five out of seven defects but upheld tax proposals for defects 5 and 6. The rectification application submitted with additional documents was later rejected on 27.05.2024. The petitioner argued that their submissions, including invoices and credit notes, demonstrated zero-rated supplies and ITC adjustments, but they were denied a personal hearing. Furthermore, the rectification rejection lacked reasoning and omitted reference to key annexures.
The High Court found that the original order provided specific reasons for rejecting the claims related to defects 5 and 6, such as the absence of requisite documents like the MEPZ certificate and proof of ITC reversal. However, the court acknowledged the petitioner’s subsequent submission of additional evidence and deemed it necessary to reconsider the matter for a fair resolution. The court directed the petitioner to deposit 20% of the disputed tax for defects 5 and 6 and re-submit relevant documents within 15 days. The respondent was instructed to grant a personal hearing and issue a fresh order within three months. The writ petition was disposed of with these directions, ensuring due consideration of the petitioner’s submissions.
