M.K.N. Coconut Industries Vs State Tax Officer (Intelligence) ( Madras High Court)
The Madras High Court addressed two writ petitions filed by M.K.N. Coconut Industries, challenging assessment orders issued by the State Tax Officer (Intelligence) for the periods of December 2017 to March 2018 and April 2018 to March 2019 under Section 62 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017. The assessment orders, passed in Form GST ASMT-13, confirmed significant tax demands along with applicable interest. The petitioner, a manufacturer of desiccated coconut, had been filing GSTR-1 and GSTR-3B returns until November 2017 but subsequently defaulted on tax payments and GSTR-3B filings due to alleged business setbacks and customer payment defaults. Despite this, the petitioner continued to upload GSTR-1 returns, quantifying the tax payable.
The records indicated that an inspection was conducted at the petitioner’s premises in May 2019, during which the petitioner admitted to tax liability for the period of July 2017 to March 2019 and agreed to pay the arrears. Subsequently, the respondent issued notices under Section 46 of the TNGST Act, 2017, calling upon the petitioner to file the pending GSTR-3B returns. Despite these notices and a personal hearing opportunity, the petitioner failed to comply, citing a lack of funds and requesting more time. Consequently, the impugned assessment orders were passed in October 2019, determining the tax liability based on available information and after adjusting the Input Tax Credit (ITC) as per GSTR-2A.
