Tvl. Muralikrishna Infracon Bangalore Private Limited Vs Commissioner of Commercial Taxes (Madras High Court)
The writ petition before the Madras High Court challenged an assessment order dated 30.12.2023 passed under Section 73 of the TNGST Act. The assessment order was issued after the tax authorities identified a mismatch between the input tax credit claimed by the petitioner and the details uploaded on the GST portal. Based on this discrepancy, the respondent authority determined the disputed tax liability.
The petitioner contended that the transaction in question was genuine and that the mismatch occurred because the seller had failed to upload the relevant invoice details on the portal. It was argued that the petitioner should not be held liable for the seller’s omission. The petitioner also submitted that during the relevant period there were difficulties in operating the portal, which resulted in the petitioner not properly participating in the enquiry conducted by the authorities. The petitioner requested that an opportunity be granted to present the necessary documents and cooperate with the respondent authority.
The Court considered the nature of the transaction, the petitioner’s explanation for not effectively participating in the earlier enquiry, and the fact that the transaction occurred during the first year of the TNGST regime. Taking these factors into account, the Court was inclined to grant the petitioner one opportunity.
