Hajee S M Ahamed and Company Vs Deputy State Tax Officer (Madras High Court)
The case of Hajee S M Ahamed and Company vs Deputy State Tax Officer revolves around a contentious issue of GST compliance regarding the generation of e-way bills. The Madras High Court recently delivered a significant judgment concerning a demand of ₹25,000 in GST and an imposing penalty of ₹1.36 crore, based on allegations of ‘Nil’ value e-way bill generation.
The petitioner, Hajee S M Ahamed and Company, challenged an order dated January 19, 2024, before the Madras High Court. The primary contention was the lack of communication regarding the proceedings leading to the order, with the petitioner only becoming aware upon receiving a recovery letter from the second respondent on May 27, 2024.
Legal counsel argued that while the tax demand was relatively modest at ₹25,000, a staggering penalty of ₹1.36 crore was levied for purportedly failing to generate e-way bills with proper value declaration. The petitioner asserted that e-way bills amounting to ₹6,81,55,597 were indeed generated, backed by an abstract sourced from the GST portal.
The court scrutinized the impugned order and found that substantial penalty hinged on allegations of ‘Nil’ value e-way bills. The petitioner furnished detailed records and an abstract illustrating substantial e-way bill transactions during the relevant period, amounting to ₹6,81,55,597. Additionally, a debit of ₹1,55,300 from the petitioner’s account covered the tax demand and part of the penalty.
