Madras HC Remits GST Order for Fresh Adjudication to Consider Reply & Documents

Rajkumar Rope Merchant Vs State Tax Officer (Madras High Court)

The Madras High Court disposed of a writ petition filed by the petitioner challenging an order under GST issued by the State Tax Officer. The dispute arose from a Show Cause Notice in FORM GST DRC-01 dated 09.02.2024 for the tax period April 2020 to March 2021, which demanded payment of certain GST dues. Prior to this, the petitioner had received a notice in DRC-01A dated 05.04.2023, demanding a total of ₹1,28,970 for IGST, CGST, SGST, and related penalties. Subsequently, the demand was confirmed in DRC-01 dated 09.02.2024 for a lesser amount of ₹43,518 (₹11,759 towards CGST and SGST, and ₹20,000 as penalty).

The petitioner submitted that due to pressure from the authorities, the full amount of ₹1,28,970 demanded in the earlier notice was paid on 21.11.2024, and intimation of payment was submitted in FORM DRC-06. The petitioner contended that the impugned order dated 12.12.2024, which increased the interest component suo motu, was passed without giving the petitioner an opportunity to respond to the DRC-01 notice of 09.02.2024. Consequently, the petitioner requested a remand to file a proper reply and provide supporting documents.

The Government Advocate for the respondent submitted that the discrepancy in the notices was only a typographical error and that the demand in the order dated 12.12.2024 was correct. The Court, after considering submissions from both sides and noting that the petitioner had already paid ₹1,28,970, directed that the case be remitted back to the respondents. The petitioner was instructed to file a proper reply to the Show Cause Notice in DRC-01 dated 09.02.2024 along with relevant documents to substantiate the case. The impugned order dated 12.12.2024 was to be treated as an addendum to the earlier Show Cause Notice.