A.S.R Constructions Vs State Tax Officer (Madras High Court)
The Madras High Court heard a writ petition filed by the petitioner challenging an order dated 25.02.2025, which partly confirmed a tax demand raised through a Show Cause Notice (SCN) in DRC-01 dated 25.11.2024 under the GST enactments. The petitioner contended that part of the demand was unjustified as certain defects noted in the SCN had already been addressed and resolved before the issuance of the impugned order.
The SCN had identified four defects. Out of these, the demand for defect No. 2 was dropped, and for defect No. 4, the petitioner agreed to pay the applicable late fee under Section 47 of the GST Act. Regarding defect No. 1, the petitioner explained that the alleged shortfall of tax on account of outward supplies reflected in GSTR-09 amounted to ₹4,14,998 (₹2,07,499 each under CGST and SGST), which had been fully paid from the electronic credit ledger on 19.12.2022—well before the issuance of the SCN. Therefore, the petitioner argued that imposing interest on this amount was unwarranted, as payment had already been made prior to the show cause proceedings.
With respect to defect No. 3, the petitioner submitted that an amount of ₹48,835 each under CGST and SGST had been confirmed against them. The petitioner claimed to have obtained certificates from suppliers substantiating eligibility for the input tax credit (ITC) related to this defect and requested an opportunity to present these documents afresh. The petitioner sought the court’s intervention to reconsider these aspects instead of pursuing the statutory appellate route.
