A final chance has been provided by the Madras High Court to the applicant to address the nonpayment of interest on the late payment and the GST returns mismatch.
An order on January 11, 2024, has been contested by the writ petition issued via the first respondent- The State Tax Officer (Int), Adj & Legal, based on a breach of natural justice.
The applicant, Ramesh Associates is in furnishing the works contract services for Indian Oil Corporation and Hindustan Petroleum, alleged that the differences related to the FY 2017-18.
Investigation on July 4, 2023, Reveals Two Issues: GSTR-3B and GSTR-2A Mismatch, Non-Payment of Interest on Delayed Tax Payments
Even on September 11, 2023, after receiving an intimation in Form DRC-01A, and a following GST notice in DRC-01 dated September 26, 2023, the applicant is unable to answer.
It was claimed by the applicant that neither the SCN nor the assessment order was furnished by the post or personal tender however were only uploaded on the GST portal leaving them clueless about the proceedings
The applicant asked for a chance to elaborate on the discrepancies lying in a recent Madras High Court ruling in M/s. K. Balakrishnan, Balu Cables v. O/o. Assistant Commissioner of GST & Central Excise, where a similar case was remanded after a 25% deposit of the disputed tax.
Justice Mohammed Shaffiq acknowledging submissions and claims set aside the impugned order and asked the applicant to deposit 25% of the disputed tax.
It was asked by the court to treat the assessment order as a Show Cause Notice (SCN) permitting the applicant to file the objections in the identical time duration. The GST department was asked to regard such objections and pass a new order post a reasonable hearing.
It was cited by the bench that the failure to follow the deposit or objection due dates shall result in the restoration of the assessment order directing in the confirmation of the demand. Subsequently, the writ petition was disposed of.
| Case Title | Ramesh Associates vs. The State Tax Officer (Int) |
| Citation | W.P. No.35262 of 2024 and W.M.P.Nos.38166 and 38167 of 2024 |
| Date | 21.11.2024 |
| For Petitioner | Ms.G.Vardini Karthik, Mr.TNC Kaushik, and Mr.Rajnish Pathiyil |
| Madras High court | Read Order |
