Gayathri Builder Vs Commercial Tax Officer (Madras High Court)
The Madras High Court recently addressed a writ petition filed by Gayathri Builder challenging an assessment order dated February 12, 2025, which confirmed a tax demand. The order was preceded by a Show Cause Notice (GST DRC-01) dated July 31, 2024, and subsequent reminders and notices for a personal hearing.
The petitioner contended that the demand was confirmed solely due to their failure to respond to the Show Cause Notice, and they requested a single opportunity to substantiate their case with relevant documents.
Conversely, the respondents cited several Supreme Court judicial precedents, including Singh Enterprises Vs. Commissioner of Central Excise, Jamshedpur and others (2008), Commissioner of Customs and Central Excise Vs. Hongo India Private Limited and another (2009), and Assistant Commissioner (CT) LTU, Kakinada and others Vs. Glaxo Smith Kline Consumer Health Care Limited (2020). These rulings emphasize the necessity of adherence to statutory procedures and deadlines, arguing that the writ petition was without merit due to the petitioner’s failure to prosecute their case.
The High Court acknowledged the arguments but opted to follow its consistent view in similar circumstances to grant conditional relief and advance substantial justice.
The Court quashed the assessment order and remitted the case back to the Commercial Tax Officer (Respondent 2) for a de novo adjudication, subject to two mandatory conditions being met by the petitioner:
