Case Law Details
GG Organics Care Private Limited Vs State Tax Officer (Madras High Court)
The Madras High Court addressed the challenge to an order dated 22.12.2023 in the case of GG Organics Care Pvt. Ltd. Vs State Tax Officer. The petitioner, a demerged entity from GG Organics Pvt. Ltd., contested proceedings initiated against them following an audit and the issuance of a show-cause notice.
Counsel for the petitioner argued that the audit wasn’t conducted within the stipulated three-month period as required by Section 65(4) of the GST enactments. Additionally, the petitioner’s explanation regarding non-filing of Form ITC-02 was not duly considered. They contended that no Input Tax Credit (ITC) was transferred to the consumer division, hence the form wasn’t required.
The court acknowledged the petitioner’s willingness to remit 10% of the disputed tax demand as a condition for remand. However, the Additional Government Pleader highlighted that the objection to the audit’s duration was belated.
Given the circumstances, the court set aside the impugned order and remanded the matter for reconsideration. The petitioner was instructed to remit 10% of the disputed tax demand within two weeks. Once confirmed, the State Tax Officer was directed to provide a reasonable opportunity to the petitioner for a fresh hearing and issue a new order within two months. The petitioner was also given the opportunity to file Form ITC-02 during this process.
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