AP High Court Directs GST Taxpayer to Appellate Authority Over Steel Scrap Assessment

Sakthi Ferro Alloys India Pvt.Ltd Vs State of Andhra Pradesh (Andhra Pradesh High Court)

Andhra Pradesh High Court held that this Writ Petition is disposed of relegating the petitioner to the alternative remedy of appeal provided under the GST Act. Accordingly, writ disposed of with direction to prefer appeal before appellate authority.

Facts- The petitioner is in the business of Trading Steel Scrap apart from having interests in Logistics, Warehousing, Industrial Parks and manufacturing of TMT Bars and other products. Inspection of the business of the petitioner had been carried out for the financial year 2017-2018, on 31.01.2020. A notice was issued under DRC-01A, to the petitioner, on 07.06.2022, pointing out to certain discrepancies and the requirement of payment of deficit tax. The petitioner is said to have paid the requisite tax after which the 6^th respondent-Deputy Assistant Commissioner issued proceedings on 13.06.2022 concluding the adjudication. The said proceedings have concluded the adjudication for the period 2017-2018 to 2021-2022 up to October, 2021, by way of issue of DRC-05.

Thereafter, further audit proceedings were initiated by the 4^th respondent, who issued a notice, dated 21.10.2022, u/s. 65 of the APGST Act, 2017 to the petitioner for conduct of audit. This audit was for the period June, 2017 to March, 2022. After the issuance of the discrepancy notice and audit reports, the 4^th respondent issued a show cause notice on 30.04.2024 proposing levy of tax and penalties for F.Ys. 2017-2021. After the petitioner had availed of the opportunity of proposing hearing and filing of documents, the 4^th respondent issued an assessment order, u/s. 74 of the APGST Act, 2017, on 05.09.2024, for F.Ys. 2017-2018 and 2020-2021. After the assessment order had been passed, further rectification orders were issued on 10.9.2024, for F.Ys. 2017-2018 and 2018- 2019. At the end of these orders, the petitioner was called upon to pay an amount of Rs.130,61,31,604/- for F.Ys. 2017-2021. The petitioner has approached this Court, by way of the present Writ Petition challenging of the aforesaid proceedings and orders.