Alfa Flugs Electrodes Vs State Tax Officere-1 (Madras High Court)
The Madras High Court has directed the State Tax Officer to redo an assessment order against Alfa Flugs Electrodes, allowing the petitioner a fresh opportunity for hearing and data review. The court’s decision came after Alfa Flugs Electrodes contested an assessment order that confirmed a tax demand primarily due to an input tax credit mismatch.
The petitioner argued that the State Tax Officer failed to provide the specific mismatch data, effectively denying them a proper opportunity to respond. Furthermore, Alfa Flugs Electrodes contended that the assessment order was uploaded to the web portal without a physical copy being provided, leading to their unawareness of the order until distraint proceedings were initiated on April 8, 2025.
Acknowledging the lack of opportunity afforded to the petitioner, the High Court set aside the impugned assessment order. To safeguard revenue interests, the court mandated that Alfa Flugs Electrodes deposit 10% of the total demand within two weeks. Upon this payment, the respondent authority is directed to lift any bank attachments and conduct a fresh assessment. The new assessment must include a reasonable opportunity for the petitioner to present their case, with the process to be completed within three months from the date of the 10% deposit. The writ petition was allowed without costs.
