Tvl. Nagaraj Sellappan Vs State Tax Officer (Madras High Court)
The Madras High Court addressed a writ petition challenging two GST orders for the Tax Period 2021-22. The first, dated 20.03.2023, confirmed a demand of Rs. 30,23,512/- comprising SGST, CGST, interest, and penalties under Section 74 of the respective GST enactments. The second, dated 14.08.2023, partially rejected an application for rectification filed under Section 161, reducing the total payable amount to Rs. 4,70,808/-. The petitioner had voluntarily paid Rs. 3,38,310/- towards SGST and CGST under Section 73(5) via Form DRC-03. The 14.08.2023 order noted that under Section 74(11), a person served with an order under Section 74(9) could settle the liability within thirty days by paying tax, interest, and 50% penalty, which the petitioner had not availed.
The petitioner argued for an opportunity to appeal the imposition of penalty under Section 74(9), citing that the 20.03.2023 order was ex parte. The Government Advocate contended that the writ petition was filed after a significant delay and that the petitioner had admitted tax liability but failed to pay interest on time. Considering that the petitioner had partly discharged the tax liability and the grievance was partially redressed, the High Court declined to remit the matter to the Respondent.
