Tvl. Spark Bio Gas Private Limited Vs State Tax Officer (FAC) (Madras High Court)
The Hon’ble Madras High Court in the case Tvl. Spark Bio Gas (P.) Ltd v. State Tax Officer (FAC), Vellore [W.P. 19801/2024 dated July 31, 2024] held that an order released without giving proper notice is contrary to principles of natural justice.
Facts:
Tvl. Spark Bio Gas (P.) Ltd. (“the Petitioner”) is a wholly owned subsidiary of M/s. Mahasakthi Bio Enercon Private Limited (“the Holding Company”). The holding company specialised in the production and bottling of bio-CNG and was awarded the concession by the Greater Chennai Corporation for the construction of six biogas plants. For fulfilment of the said purpose CEID Consultants and Engineering Private Limited (“the CEID”) agreed to supply goods by procuring them from Power Hydrotech Private Limited (“the Power Hyderotech”). The transportation of the goods was to happen on “bill to ship” basic form Gujrat to Chennai with the petitioner named as consignee in the tax invoice.
The goods were intercepted by the authorities on the way from Gujrat to Chennai. The Notices that were issued in Form GST MOV-1 and MOV-2 mentioned only CIED and Power Hydrotech. Despite this the order (“the Impugned Order”) dated May 27, 2024 imposed penalties on the petitioner under section 129 of applicable GST statutes.
