Future Consumer Limited Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)
In a significant ruling, the Madhya Pradesh High Court has dismissed a petition filed by Future Consumer Limited challenging the tax liability imposed by the State Tax authorities under the Goods and Services Tax (GST) Act. The court’s decision revolves around the petitioner’s failure to respond adequately to a show-cause notice issued by the tax authorities.
The petitioner, Future Consumer Limited, approached the High Court to contest an order dated August 24, 2023, issued by the Deputy Commissioner of State Tax, Circle-14, Indore. This order stipulated a tax liability of ₹86,73,188, along with interest and penalties, bringing the total amount to ₹1,16,65,438.
Petitioner’s Arguments
In presenting its case, Future Consumer Limited cited a previous judgment by the High Court concerning a different entity, M/s Technosys Security System Private Limited, which allowed for a personal hearing before the imposition of penalties. The petitioner’s counsel, Aditya Goyal, argued that similar rights should be extended to Future Consumer, contending that the company had not been afforded a proper opportunity for a personal hearing, as mandated under Section 75 of the GST Act.
The crux of the petitioner’s argument hinged on the interpretation of the law, asserting that without a personal hearing, the proceedings and the resultant tax liabilities were unsustainable.
