Tvl. K V M Textiles Vs Deputy State Tax Officer – I (Madras High Court)
In a notable case before the Madras High Court, Tvl. K V M Textiles challenged an original order issued by the Deputy State Tax Officer (DSTO) regarding GST liability. The crux of the dispute centered around the tax demand arising from the assumption that the sales turnover of the petitioner should be 110% of the purchase turnover. The petitioner argued that they had not been given a fair opportunity to contest the tax demand, primarily due to procedural shortcomings and personal hardships. The court’s decision to remand the case has significant implications for how GST liabilities are assessed and the procedural fairness in such cases.
1. Case Background and Petitioner’s Argument
On January 12, 2024, the DSTO issued an order demanding additional GST from Tvl. K V M Textiles based on a discrepancy between the reported purchase and sales turnover. The petitioner contested this order, claiming that they were denied a fair opportunity to address the tax demand. The basis of their argument was that the notices and communications regarding the tax proposal were uploaded solely on the GST portal without any direct communication, compounded by the petitioner’s inability to address the matter promptly due to a family emergency.
