Sri Mahalakshmi Construction Vs State Tax Officer (Data Analytics) (Madras High Court)
Madras High Court has addressed a petition from Sri Mahalakshmi Construction, a company seeking a fresh hearing after its rectification application was rejected due to non-participation. This is the second time the petitioner has approached the court on the same issue.
The court noted that the initial assessment order was passed on November 22, 2024. The petitioner then filed an application for rectification under Section 161 of the TNGST Act, which led to a previous writ petition. The court had previously directed the State Tax Officer to dispose of the rectification application.
Following that directive, the tax officer scheduled multiple hearing dates. However, the petitioner failed to appear, citing the unavailability of their Chartered Accountant. This non-cooperation resulted in the rejection of the rectification application on March 19, 2025.
Acknowledging that the petitioner may have a valid case but also recognizing the lack of cooperation, the court sought to balance the interests of both parties. While the petitioner had the option to file a statutory appeal, the court provided an alternative. The bench directed the petitioner to deposit ₹15 lakh, which is approximately 5% of the disputed tax amount, within 15 days. This amount must be paid in cash from the petitioner’s Electronic Cash Register. This pre-deposit is lower than the 10% required for an appeal under Section 107 of the TNGST/CGST Act.
