Ella Tea Industry Vs Deputy State Tax Officer-I (Madras High Court)
Madras High Court held that reopening the closed matter without assigning specific or new reasons is contrary to law and in violation of the principles of natural justice. Thus, order impugned is liable to be quashed.
Facts- Petitioner is engaged in the Tea Industry and are a registered dealer under the Tamil Nadu Goods and Services Tax (TNGST) Act. Upon scrutiny u/s. 61 of the Act, for the year 2018- 2019, the respondent found some discrepancies in the petitioner’s tax return and issued a show cause notice dated 25.11.2021, stating that the petitioner company had not declared its correct tax liability, while filing GSTR-3B for the said period and had claimed excess Input Tax Credit (ITC) than what was available in the inward data. Upon receipt of the same, the petitioner submitted its reply on 19.12.2022 with supporting documents, and the respondent, being satisfied with the explanation provided, dropped further proceedings against the petitioner vide order dated 03.01.2023.
Despite the closure of the matter on previous occasion, the respondent issued another show cause notice on 28.12.2023, alleging that the petitioner had availed excess ITC for the same year 2018-2019, and was required to reverse the same. Respondent, without duly considering the reply submitted by the petitioner, simply confirmed the proposal stated in the show cause notice dated 28.12.2023 and passed a demand order u/s. 73(9) of the TNGST/CGST Acts, 2017. Aggrieved by the same, the petitioner has filed the present writ petition.
