Exide Industries Limited Vs Deputy Commissioner (ST)-I (Madras High Court)
Madras High Court has set aside assessment orders issued against Exide Industries Limited for the financial years 2017-18 and 2018-19 and remanded the matter for reconsideration. The dispute arose when the Deputy Commissioner (ST)-I observed a mismatch between Exide’s reported turnover in its financial statements and the figures submitted in GSTR-3B returns. The company, engaged in manufacturing electric storage batteries, argued that revenue from scrap battery sales was accounted for under material costs and not turnover, leading to the perceived discrepancy. Despite providing clarifications, the assessing authority did not fully consider these explanations before passing the disputed orders.
During the hearing, Exide Industries submitted additional documents breaking down the tax payments on scrap and battery sales. The Government Advocate acknowledged that these details had not been examined before the assessment orders were finalized. Consequently, the court ruled that Exide should be given another opportunity to present its case, including submitting additional documents and a detailed reply. The assessing authority has been directed to issue a fresh notice, conduct a personal hearing, and reassess the matter in accordance with the law. This decision highlights the importance of due process in GST assessments and ensures that taxpayers’ explanations and documentary evidence are properly evaluated before finalizing tax liabilities.
