Ratna Cafe Vs Assistant Commissioner (Madras High Court)
In Ratna Cafe Vs Assistant Commissioner, the Madras High Court disposed of a writ petition challenging an Order-in-Original dated 26.07.2024 passed under Section 73 of the GST enactments for the tax period April 2019 to March 2020 and the consequential attachment of the petitioner’s bank account on 29.01.2026.
The impugned order was preceded by a Show Cause Notice dated 21.05.2024, to which the petitioner had filed a reply on 10.07.2024 but failed to appear for personal hearings. The Order-in-Original confirmed CGST and SGST demands of Rs. 10,40,258/- each, along with interest and penalties under Section 73(9). Additional confirmations included IGST demand, further CGST and SGST amounts of Rs. 3,724/- each, interest amounts including Rs. 17,67,768/- and Rs. 2,180/-, and penalties of Rs. 10,000/- in specified instances. The order was issued without prejudice to any other action under the GST laws.
The period for filing an appeal under Section 107 of the GST enactments had expired. The petitioner submitted that it became aware of the order only after its bank account with City Union Bank was attached and sought liberty to file an appeal on merits. The first respondent contended that the dispute arose from mismatch between outward supplies in Form GSTR-1 and tax liability in Form GSTR-3B and that the demand was confirmed after considering the petitioner’s reply.
