Solai Venkateshwara Stores Vs The State Tax Officer (Madras High Court)
In a significant ruling, the Madras High Court has allowed Solai Venkateshwara Stores to file an appeal against GST assessment orders with a condition of a 25% pre-deposit. The case arose from a GST inspection that revealed stock from a demolished godown of the petitioner’s sister concern, leading to demands for tax, interest, and penalties.
Background of the Case
Solai Venkateshwara Stores, a proprietrix concern, challenged the GST assessment orders for the financial years 2021-22 and 2022-23. The orders confirmed substantial tax demands, including interest and penalties, amounting to Rs. 14,12,932 for 2021-22 and Rs. 6,14,914 for 2022-23. The dispute originated from the discovery of stock from a demolished godown during a GST inspection, which the petitioner claimed was transferred from her sister’s concern.
Challenges Faced by the Petitioner
The petitioner’s counsel argued that due to the illness and subsequent hospitalization of the petitioner’s husband, Mr. Bhuvanesh Kumar, there was an inability to file the statutory appeal within the stipulated time. Additionally, the petitioner faced financial constraints as the Department had already attached her bank account and recovered amounts from her Electronic Credit Ledger.
Court’s Consideration
The Court took into account the petitioner’s circumstances and the arguments presented. It acknowledged the difficulties faced by the petitioner and the significant impact of the imposed demands on her financial situation. The learned counsel for the petitioner requested the Court to allow the filing of a statutory appeal before the Appellate Deputy Commissioner (GST), Trichy, with a partial pre-deposit, given the unjustified nature of the demands and penalties.
