Tvl.Saras Electricals Vs State Tax Officer (Madras High Court)
Madras High Court reviewed the case of Tvl. Saras Electricals v. State Tax Officer, where the petitioner challenged a GST assessment order dated March 1, 2024, for the assessment year 2021-22. The petitioner, a dealer in electrical and electronic goods, had filed GST returns and paid taxes, but a surprise inspection in July 2023 revealed discrepancies, including fake e-way bills, mismatches between GSTR-3B and GSTR-2A, and unpaid interest on reverse charge mechanism (RCM). Subsequently, notices were issued via the GST portal, but the petitioner neither responded nor paid the disputed tax, leading to the assessment order. The petitioner contested the order, arguing that notices were not properly served and that he was unable to access the GST portal to participate in the adjudication process.
The court found merit in the petitioner’s claim and set aside the impugned assessment order, directing the petitioner to deposit 25% of the disputed tax within two weeks. Upon compliance, the assessment order would be treated as a show-cause notice, allowing the petitioner four weeks to submit objections with supporting documents. The respondent was instructed to consider the objections and pass a fresh order after providing a fair hearing. If the petitioner failed to deposit the amount or submit objections within the stipulated time, the assessment order would be reinstated. With this direction, the writ petition was disposed of without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
