Case Law Details
Rathna Traders Vs State Tax Officer (Madras High Court)
The case of Rathna Traders Vs State Tax Officer before the Madras High Court pertains to the challenge against an order dated 30.12.2023. The petitioner’s returns for the assessment periods 2017-18 to 2021-22 underwent an audit, resulting in an audit report issued on 30.09.2023. Responding to this report and subsequent notices, the petitioner submitted replies, including one on 29.12.2023. However, the impugned order was issued on 30.12.2023, allegedly without considering the petitioner’s submissions.
The petitioner’s counsel meticulously dissected the procedural irregularities and substantive issues underlying the case. Firstly, emphasis was placed on the alleged violation of statutory provisions, particularly Section 65 of the Tamil Nadu Goods and Services Tax Act and Rule 101(5) governing the issuance of audit reports. The argument posited that the audit report was issued in contravention of these provisions, raising questions about its validity.
Moreover, the petitioner contended that their responses to the various notices were disregarded. Despite submitting detailed replies, including supporting documents such as ledgers and electronic copies of invoices, the impugned order failed to reflect these submissions adequately. This led to discrepancies between the findings of the audit report and the actual evidence provided by the petitioner.
The counsel meticulously pointed out instances where the petitioner had furnished extensive documentation to refute the audit findings. For instance, in the case of trade receivables, detailed ledgers were submitted, along with electronic copies of invoices. Similarly, for zero-rated supplies, documents such as the SEZ invoice and a letter of undertaking were provided, yet these were purportedly overlooked in the final assessment.
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