Star Brand Enterprises Vs Deputy Commissioner GST and CE (Madras High Court)
CHENNAI: The Madras High Court has conditionally set aside an Order-in-Original dated March 20, 2024, confirming a GST demand of ₹69,62,780, along with interest and penalty, against Star Brand Enterprises. The court has granted the petitioner an opportunity to file a detailed reply and seek a fresh personal hearing, provided they deposit 25% of the disputed tax amount.
The writ petition was filed by Star Brand Enterprises, engaged in the business of trading Cashew Kernels, Raisin, and Toor Dhall, challenging the confirmed demand. Mr. A.P. Srinivas, learned Senior Standing Counsel (Taxes), appeared for the respondent. The court, with the consent of both parties, took up the writ petition for disposal at the admission stage.
The petitioner’s counsel informed the court that the respondent had issued a show cause notice (SCN) on December 15, 2023, proposing the aforementioned demand. Upon receiving the SCN, the petitioner engaged a consultant to respond. The consultant attended a personal hearing on March 5, 2024, and requested time to file a detailed reply. However, the counsel stated that the consultant subsequently filed only a “cryptic reply” denying the allegations in the SCN, failing to provide a detailed response with proper supporting evidence. Consequently, the demand proposed in the SCN was confirmed by the respondent through the impugned order dated March 20, 2024.
