Case Law Details
Aristo Telemedia Pvt Ltd Vs Assistant Commissioner (ST) (Madras High Court)
The recent judgment of the Madras High Court in the case of Aristo Telemedia Pvt Ltd Vs Assistant Commissioner (ST) addressed significant discrepancies in a GST assessment order. This article delves into the details of the case, highlighting the grounds of challenge, the court’s analysis, and its consequential decision.
The petitioner, Aristo Telemedia Pvt Ltd, contested an assessment order dated 30.12.2023, prompted by a show cause notice issued on 30.05.2023. The notice demanded a sum of Rs. 39,34,549/- towards tax and reversal of input tax credit, which was responded to on 12.08.2023. However, the subsequent assessment order imposed a tax liability of Rs. 1,08,47,012/-, significantly exceeding the initial notice by Rs. 69 lakh.
The petitioner challenged the order on various grounds, including the discrepancy in tax liability and the absence of a personal hearing. The respondent, represented by Mrs. K. Vasanthamala, acknowledged the discrepancy, confirming that the notice initially demanded Rs. 39,34,549/-.
The court observed that the confirmed tax liability in the assessment order substantially exceeded the amount specified in the show cause notice. Moreover, the imposition of tax on “other expenses” based on the petitioner’s profit and loss account raised concerns, particularly regarding the lack of computation at the applicable rate. Additionally, the absence of a personal hearing further undermined procedural fairness.
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