Chakra Chains Jewellery (P) Ltd Vs State Tax Officer (Madras High Court)
Conclusion: Demand order of GST ( Goods and Services Tax ) was quashed on failure by the authorities to properly consider over 200 pages of supporting documents and the reply submitted by the taxpayer.
Held: Assessee had challenged the impugned order passed for the tax period 2024–2025, in the backdrop of an inspection conducted at the assessee’s premises. Assessee filed an initial reply. Subsequently, State Tax Officer issued a notice in Form DRC-01 to which a detailed reply, along with voluminous 200 pages documentary evidence, was submitted. Adjudicating authority, despite acknowledging receipt of these materials in the impugned order, concluded that assessee had merely reiterated earlier submissions and had failed to avail the opportunity to respond at the inspection stage. The order dismissed the taxpayer’s reliance on the documents and upheld the initial statement recorded during inspection. It was held that Respondent was required to independently examine the available records and arrive at a reasoned conclusion as to whether the statements recorded, the reply dated 15.07.2024 and the reply in Form DRC-06 dated 08.04.2025, collectively make out a case for confirming the demand or for dropping the same. Therefore, the impugned order stood quashed and the matter was remitted back to Respondent for passing fresh orders, on merits and in accordance with law, within a period of three months from the date of receipt of a copy of this order.
