GST Order Set Aside: Hearing was Denied, Remanded with 10% Deposit

By Editor6 Goods and Services Tax Judiciary February 11, 2025

TaxGuru Citation: 2025 taxguru.in 1073
Case Name: Tvl. S S Enterprises Electricals Vs State Tax Officer 1 (Madras High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Madras High Court

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Tvl. S S Enterprises Electricals Vs State Tax Officer (Madras High Court)

In a recent judgment, the Madras High Court overturned an GST assessment order against Tvl. S S Enterprises Electricals due to the absence of a personal hearing, citing a violation of natural justice principles. The petitioner, engaged in works contract and electrical equipment sales, contested discrepancies highlighted during an inspection. Despite filing responses, the order was issued without allowing sufficient opportunity to present evidence. The court referenced precedent, requiring a 10% deposit of disputed taxes for remand, facilitating further review by the adjudicating authority.

The court directed the petitioner to deposit 10% of the disputed tax within four weeks, adjusting any prior payments made. Non-compliance would reinstate the initial assessment. The judgment emphasizes procedural fairness in tax assessments, aligning with recent judicial precedents ensuring taxpayer rights and procedural integrity.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

The present writ petition is filed challenging the impugned order Order GSTIN. No. 33AGRPA3240P1ZA /2020-2021, dated 19.07.2024 passed by the respondent on the premise that the same was made in violation of principles of natural justice.

2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in works contract and dealer in electrical transformers, static converters and is registered under the GST Act. During the relevant period of 2020-21, the petitioner has filed the returns and paid appropriate taxes. Based on the authorization issued by the Joint Commissioner (ST)Intelligence-I, the petitioner’s place of business was inspected. During the course of such inspection, the following discrepancies were noticed:

Particulars

Act

2020-21

Credit notes for the year 2020-21

CGST