National Contracting Company Limited Vs Assistant Commissioner (ST) (Madras High Court)
In National Contracting Company Limited vs Assistant Commissioner (ST), the Madras High Court addressed a writ petition challenging an assessment order under the CGST Act, 2017. The petitioner argued that the order exceeded the scope of the Show Cause Notice (SCN) and ignored objections submitted in response. The dispute centered on discrepancies in TDS deductions for works contracts with government departments. Specifically, the petitioner contended that TDS for supplies made in FY 2018-19 was deducted only in FY 2019-20 due to delayed payments. This caused a mismatch between GSTR-3B and GSTR-7 filings, which was highlighted in the SCN. However, the final order raised additional issues, such as advances, asset sales, and non-GST supplies, which were not part of the SCN.
The Court found the impugned order invalid under Section 75(7) of the CGST Act, which prohibits assessing authorities from exceeding the grounds specified in the SCN. The Court also noted a failure to consider the petitioner’s objections adequately, violating principles of natural justice. While the respondent argued that the matter was appealable and outside the purview of writ jurisdiction, the Court held that writ relief was justified due to these procedural lapses. It set aside the order, treating it as a new SCN and directing the petitioner to submit fresh objections for re-evaluation. The ruling underscores the importance of adhering to procedural safeguards and statutory limits in tax assessments.
