Managing Director Vs K. R. Subramanian (Madras High Court)
Summary: The Madurai Bench of the Madras High Court dismissed an intra-court appeal filed by the Managing Director, Senior Regional Manager and District Manager of the Tamil Nadu State Marketing Corporation Limited (TASMAC), upholding the order of the learned Single Judge concerning the collection of GST on a penalty imposed upon an employee for shortage of liquor stock.
The private respondent, K.R. Subramanian, was working as a Supervisor at TASMAC Shop No.6547, Kiranur, Pudukkottai District. Following a shortage of liquor stock at the shop, a penalty of Rs.1,41,435/- was imposed on him, along with GST and interest. He challenged the levy before the Madras High Court in W.P.(MD) No.10355 of 2020. By order dated 18.12.2020, the learned Single Judge allowed the writ petition and directed the appellants to conduct a de novo enquiry regarding collection of GST on the penalty.
The appellants challenged that order in the present intra-court appeal. Their case was that on 24.03.2020, following the nationwide lockdown announced by the Government of India with effect from 6.00 p.m., the respondent had been instructed to close the TASMAC shop at 6.00 p.m. Ordinarily, after the prescribed closing time, the Supervisor would complete closing formalities, including verification of stock, preparation of the day’s accounts and remittance of sale proceeds on the next working day. According to the appellants, the sudden lockdown prevented the respondent from completing those formalities in the usual manner.
