Tvl. Tirupathi Packaging Vs Deputy State Tax Officer-2 (Madras High Court)
HC grants opportunity for reply to SCN as Assessee being small businessman was not aware of the proceedings initiated
Summary: In the case of Tvl. Tirupathi Packaging v. Deputy State Tax Officer-2 (W.P. No. 20988 of 2024), the Madras High Court addressed a writ petition filed by Tirupathi Packaging challenging a recovery order issued on December 26, 2023. The order demanded a total of ₹3,56,158, comprising equal amounts for Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST), along with interest totaling ₹1,94,022. The petitioner claimed the demand arose due to an error in filing their GSTR-3B return, where they incorrectly categorized input tax credit as a reverse charge mechanism instead of claiming it under the appropriate section.
The petitioner argued that as a small enterprise, they were unaware of prior notices leading to the demand, including those for personal hearings. They requested a chance to present their case, emphasizing that the issue stemmed from a misentry made shortly after the GST implementation. In contrast, the government representative contended that the petitioner had not engaged with the process, failing to respond to notices or personal hearing requests. Furthermore, the initial notice had been returned due to the premises being locked.
