Madras HC granted opportunity to furnish objection after payment of 10% of disputed tax amount

Tvl.SKB Construction Vs Assistant Commissioner (ST) (Madras High Court)

Madras High Court directed petitioner to deposit 10% of the disputed tax amount in case of ex-parte order passed. In case the amount is paid, the order of assessment shall be treated as show cause notice and the petitioner shall submit its objections.

Facts- The petitioner is engaged in the business of civil construction works and is a registered dealer under the Goods and Services Act, 2017. During the relevant period, the petitioner filed its return and paid the appropriate taxes. However, on examination of the information furnished in the return under various heads and also the information furnished in GSTR-01, GSTR-2A, GSTR-3B, E-Way Bills and other records available, it was noticed that excess Input Tax Credit (ITC) claimed on account of non-reconciliation of information and ITC claimed from cancelled dealers, return defaulters and tax non-payers.

An intimation in DRC-01 was issued to the petitioner on 20.05.2024 and reply was filed by the petitioner on 20.06.2024. Though the reply was filed, the impugned order came to be passed confirming the proposal on the basis that the petitioner had failed to furnish the required documents, even after the lapse of more than a month.