Sri Balaji Tollways (Madurai) Private Limited Vs Deputy State Tax Officer (Madras High Court)
Madras High Court has invalidated a Goods and Services Tax (GST) demand of ₹16.67 crore issued against Sri Balaji Tollways (Madurai) Private Limited, citing a mechanical confirmation of the demand without proper consideration of the company’s reply. The court remitted the matter back to the tax authorities for a fresh inquiry.
The tollway company was initially served a show cause notice on May 13, 2024, alleging a mismatch in its Input Tax Credit (ITC) claim. Sri Balaji Tollways submitted a detailed reply on August 29, 2024, addressing the discrepancies.
However, the Deputy State Tax Officer proceeded to confirm the entire demand on September 10, 2024. A review of the confirmation order revealed that the taxpayer’s contentions were not properly addressed. The order merely stated, “The taxpayer does not given the valid documents / Supporting documents. Hence the proper officer decided to confirm the Notice Proposal amount.”
Challenging this confirmation, the company initially filed a writ petition, but a single judge relegated them to the appeal remedy. The current writ appeal was then filed against that decision.
The High Court observed that the impugned order demonstrably failed to consider the appellant’s defense, mechanically affirming the original demand. Citing this procedural lapse, the Court set aside both the assessment order and the single judge’s order. The case has been sent back to the respondent for a fresh inquiry as per law, with the Court clarifying it has not delved into the merits of the ITC claim itself.
