Tvl. Sri Sai Company Vs State Tax Officer (Madras High Court)
Madras High Court Directs Tax Department to Furnish Verification Report, Declines to Quash GST Show Cause Notice
Madras High Court has opted not to quash show cause notices (SCNs) issued to Tvl. Sri Sai Company, a container transport business, but has instead directed the tax authorities to provide the petitioner with a copy of the verification report that formed the basis of the notices. The ruling emphasizes the principles of natural justice, ensuring the assessee has a fair opportunity to respond to the allegations before further proceedings.
Tvl. Sri Sai Company, engaged in container transport, operates from No.187/238, Royapettah High Road, Mylapore, Chennai. On October 8, 2024, the Joint Commissioner, Chengalpattu Intelligence Division, conducted an inspection. The petitioner asserts that the nature of their services was explained, and relevant GST returns and documents were submitted, concluding the inspection without incident.
Subsequently, on March 26, 2025, the petitioner received show cause notices proposing a substantial penalty under Section 122 of the Tamil Nadu Goods and Services Tax (TNGST) Act. These notices were based on an alleged verification conducted on August 23, 2024. The core of the petitioner’s grievance was that they were neither provided with a copy of this crucial verification report nor afforded an opportunity to respond to its contents. Furthermore, the petitioner contended that no such verification even took place on the stated date.
