Tvl. SSB Construction Vs Deputy Commissioner (CT) (Madras High Court)
Madras High Court has directed the Goods and Services Tax (GST) Department to entertain an appeal filed by a government civil works contractor, Tvl. SSB Construction, despite a 37-day delay. The court’s decision, issued in response to a writ petition, came after the petitioner provided a “satisfactory explanation” for the delay, attributing it to confusion over the applicable GST rate and interactions with a Block Development Officer (BDO).
The case arose after Tvl. SSB Construction, a proprietary concern engaged in government civil works, received a show cause notice (DRC-01 dated August 15, 2023) from the Deputy Commissioner (CT), alleging discrepancies between GSTR-3B and GSTR-7 for the assessment year 2022-2023. The petitioner responded, claiming a mistake in the taxable turnover calculation within the notice and requesting the proceedings be dropped. However, the second respondent proceeded to issue an assessment order on July 30, 2024, without adequately addressing the petitioner’s objections.
Aggrieved by this assessment, Tvl. SSB Construction filed an appeal, which was subsequently rejected by the first respondent, the Deputy Commissioner (CT), on April 15, 2025, solely on the grounds of a 37-day delay. In its petition to the High Court, the contractor explained that the delay occurred because it had approached the Block Development Officer (BDO) to remit the balance tax amount. The BDO, however, declined the request, stating that the applicable tax rate for that period was 12%, contradicting the 18% rate stated in the assessment order. This interaction, the petitioner argued, led to the appeal’s delayed submission.
