Case Law Details
Newlab F Apparels LLP Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
In a recent judgment by the Madras High Court, a taxpayer, Newlab F Apparels LLP, challenged an assessment order dated 25th October 2023, citing lack of reasonable opportunity to contest the tax demand. The petitioner, engaged in the retail and wholesale trading of leather apparels, argued that they were unaware of the proceedings due to reliance on a GST compliance consultant who failed to inform them about the notices issued by the tax authorities.
The dispute arose when the petitioner received a notice in Form ASMT 10 on 16th June 2023, followed by an intimation on 10th May 2023, and a show cause notice on 7th August 2023. The petitioner, claiming unfamiliarity with GST compliance procedures, alleged discrepancies in the amounts specified in the notices and the subsequent order.
The petitioner, through their counsel, contended that the limited liability partnership was established in 2019, and thus, they were not well-versed with GST compliance procedures. Additionally, they highlighted disparities between the amounts mentioned in the ASMT 10 notice and those in the show cause notice and the final order. As a gesture of cooperation, the petitioner expressed willingness to remit 10% of the disputed tax demand.
The Government Advocate, representing the first respondent, argued that the petitioner had been provided ample opportunities to contest the tax demand, as evident from the impugned order.
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