Case Law Details
K.C. Mathaiyan Vs Assistant Commissioner (ST) (Madras High Court)
The Madras High Court recently addressed the plea of K.C. Mathaiyan against the Assistant Commissioner concerning GST demands. The court intervened, providing Mathaiyan with another opportunity to contest the tax demands on merit, setting aside the respective impugned orders.
In both writ petitions, Mathaiyan challenged the orders citing lack of reasonable opportunity to contest the tax demands. He asserted his status as a works contractor executing civil work for government departments and local authorities. Mathaiyan received intimation and show cause notices regarding alleged discrepancies between the GSTR 1 and 3B returns compared to the GSTR 2A return. Despite making payments towards tax liabilities and appearing before the respondent, Mathaiyan was not heard before the issuance of impugned orders. Hence, he sought another chance to contest the tax demands on merit.
During the proceedings, Mathaiyan’s counsel highlighted that the entire tax liability for the assessment period 2019-2020 was discharged, and over 50% of the liability for the assessment period 2021-22 was settled. Acknowledging Mathaiyan’s efforts to fulfill tax obligations, the court deemed it just and appropriate to grant him another opportunity to contest the tax demands, interest, and penalties on merit.
Consequently, the impugned orders dated 20th April 2023 and 21st November 2023 were set aside, and the matters were remanded to the respondent for reconsideration. Mathaiyan was granted 15 days to submit a reply to the show cause notice, following which the respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue fresh orders within two months.
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