Dhani Loans And Services Ltd. Vs State Tax Officer (Madras High Court)
The Madras High Court allowed a writ petition challenging an assessment order passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 and a subsequent appellate order rejecting the assessee’s appeal on the ground of delay. The petitioner contended that it had been unable to place relevant materials before the assessing authority to explain the discrepancy referred to in the show cause notice. According to the petitioner, the disputed entries had already been reversed prior to issuance of the show cause notice and, if such reversal was considered along with the amount paid under the Reverse Charge Mechanism (RCM), there would be no variation between GSTR-2A and GSTR-3B and no further tax liability would arise.
The Court took note of the petitioner’s submission and also the fact that 100% of the disputed tax liability had already been recovered. In these circumstances, the Court held that the petitioner should be granted an opportunity to present its case before the assessing authority afresh.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ petition is filed challenging the impugned order dated 19.04.2022, which is the order of assessment passed under Section 73 of the Tamil Nadu Goods and Services Act, 2017 and the order dated 28.10.2025, which is an order rejecting the appeal filed by the assessee as the same was belated.
