Sunil Kumar Reddy Dontireddy Vs Superintendent of CGST (Madras High Court)
The Madras High Court, by a common order dated 08.06.2026, decided W.P. Nos. 18541 and 18697 of 2025 challenging two Orders-in-Original passed under the GST enactments. The petitions questioned Order-in-Original No. 79/2024-GST dated 26.12.2024 and Order-in-Original No. 04/2025-GST-(Supdt-R-II) dated 04.02.2025, which were preceded by show cause notices dated 16.05.2024 and 27.05.2024 respectively, covering the assessment years 2017-18 to 2021-22 and 2017-18 to 2022-23.
The impugned orders confirmed various demands of tax, interest and penalty under Section 74 of the CGST Act, 2017 and corresponding provisions of the TNGST Act, including demands relating to IGST, CGST and SGST, non-payment of GST, reverse charge mechanism (RCM) on freight and transport (GTA) services, alleged ineligible input tax credit (ITC), interest under Section 50, and penalties equivalent to the tax determined under Section 74 read with Section 122. The detailed computations of the confirmed demands formed part of the impugned orders.
The Court recorded that both impugned orders were preceded by show cause notices issued under Section 74 of the GST enactments. According to the impugned orders, an audit had been conducted under Section 65 of the GST enactments. Based on discrepancies noticed during the audit, proceedings under Section 74 were initiated against the petitioner.
