Ashwa Air Technologies Vs State Tax Officer (Intelligence) (Madras High Court)
Madras High Court held that as requested by the petitioner, an opportunity of heard will be granted on payment of deposit of 25% of the disputed tax amount since petitioner failed to respond to notice in DRC-01.
Facts- The petitioner is manufacturer of machinery components and is registered under the GST Act. As per the authorization of the Joint Commissioner (ST)(Intelligence) a surprise inspection was conducted at petitioner’s place of business on 05.04.2023 and excess claim of ITC when compared with the returns in Form GSTR-3B and GSTR 2A and excess claim of ITC availed as per Form GSTR-9 were noted.
An intimation in Form DRC-01 was issued on 07.02.2024 and reminder on 07.03.2024. However, the petitioner had not responded to any of the above notices / intimation and the impugned order came to be passed.
Conclusion- Held that the impugned order dated 01.04.2024 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner.
