Saamy Trading Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court has directed the Assistant Commissioner of State Taxes to consider and pass an order on a rectification application filed by Saamy Trading, a petitioner challenging a Goods and Services Tax (GST) demand order. The petitioner had moved the court alleging that their application seeking rectification of an order raising a tax demand based on an alleged excess Input Tax Credit (ITC) claim had not been addressed by the tax authorities.
Saamy Trading was issued a demand order dated July 2, 2024, by the Assistant Commissioner for the assessment year 2020-21. The order reportedly alleged that the company had claimed excess ITC and consequently raised a tax demand of ₹3,79,336 along with interest amounting to ₹4,013.
According to the petitioner, the demand order was issued without taking into account crucial information regarding Reverse Charge Mechanism (RCM) payments already made by them. Contending that the failure to consider these payments led to an erroneous demand, Saamy Trading filed an application for rectification of the order with the Assistant Commissioner on March 27, 2025.
However, the petitioner submitted before the High Court that the rectification application had not elicited any response from the respondent authorities. Faced with the lack of action on their rectification request, Saamy Trading filed a Writ Petition seeking a direction from the court to the Assistant Commissioner to reassess the matter and pass a rectification order.
