Tvl. SKS Builders and Promotors Vs Assistant Commissioner (ST) (Madras High Court)
In a case before the Madras High Court, the petitioner challenged an impugned order dated 15.10.2025 confirming the proposal contained in a Show Cause Notice issued in Form DRC-01 dated 23.07.2025. The order was passed after considering the petitioner’s reply submitted in Form DRC-06 dated 25.07.2025.
The Show Cause Notice alleged seven defects. However, the impugned order confirmed the demand only in respect of certain defects. The order noted that the taxpayer had produced GSTR-2A reflecting sales effected by Tvl. Transtroy (India) Ltd and, on that basis, the taxpayer sought eligibility to claim Input Tax Credit (ITC) for the corresponding transaction.
The impugned order quantified the tax demand as follows: under CGST, tax of ₹1,24,650, interest of ₹90,732, and penalty of ₹12,465, totaling ₹2,27,847. A similar amount was determined under SGST. The total demand therefore amounted to ₹4,55,694, comprising tax of ₹2,49,300, interest of ₹1,81,464, and penalty of ₹24,930.
The petitioner contended that ITC had been availed based on invoices issued by M/s. Transcon (India) Private Limited and that payments had been made for the supplies received. The petitioner further submitted that the said company was under the control of a liquidator and had failed to discharge the tax liability.
