Tvl. Raunaq Foundations Vs Deputy Commissioner (ST) (Madras High Court)
In the case of Tvl. Raunaq Foundations Vs Deputy Commissioner (ST) (Madras High Court), the petitioner challenged an appellate order dated 28.03.2023, contending that they were not given an opportunity to be heard before the order was issued. The dispute arose over transitional Input Tax Credit (ITC), and proceedings were initiated against the petitioner by the GST Department. Despite informing about a change in business address during the appeal process, the petitioner claimed they did not receive hearing notices and thus could not participate in the proceedings.
The petitioner had paid a penalty of Rs. 50,000 and remitted 10% of the disputed tax demand at the time of filing the appeal. The GST Department debited amounts from the petitioner’s electronic credit ledger, totaling approximately 37% of the disputed tax demand. The petitioner requested reconsideration of the matter due to these payments.
The Madras High Court, noting that the appellate order was issued ex parte without affording the petitioner an opportunity to present their case, set aside the order dated 28.03.2023. The Court remanded the matter back to the appellate authority for reconsideration, emphasizing the petitioner’s right to a fair hearing.
