Madras High Court GST Assessment
Technic Infrastructure Private Limited, vs. Revenue [W.P. No. 1298 of 2025]
Background of the Case
The Appellant, Technic Infrastructure Private Limited, engaged in the business of construction and works contract services and registered under the GST regime, was issued an assessment order dated 29.08.2024 under Section 73 of the GST Act, 2017 for the financial year 2019–20. The order was based on discrepancies identified during scrutiny, including mismatches between GSTR-3B and GSTR-1, GSTR-3B and GSTR-2A, GSTR-8 and GSTR-1, as well as alleged non-generation of e-way bills. The final order was passed without properly considering the reply and documentary evidence submitted by the appellant.
Arguments by the Appellant
The appellant contended that the assessment order was passed in violation of the principles of natural justice, as their reply dated 29.06.2024 was not adequately considered and they were not given a reasonable opportunity to present supporting documentation. The appellant further submitted that they were in a position to fully explain the alleged discrepancies if given another opportunity. In support of their claim, they relied on a decision of the Madras High Court in M/s. K. Balakrishnan, Balu Cables vs. Assistant Commissioner of GST & Central Excise, where under similar circumstances, the matter was remanded subject to payment of 25% of the disputed tax. The appellant expressed their willingness to comply with a similar condition for a fresh adjudication.
Respondent’s Response
The respondent, Revenue did not raise strong objection to the appellant’s plea and was agreeable to remanding the matter subject to the appellant making a partial tax deposit. It was submitted that the impugned order was passed due to the appellant’s failure to substantiate their reply with documentary evidence, but the department was open to a fresh assessment if the appellant adhered to conditions ensuring partial recovery of dues.
Court Findings and Decision
The Madras High Court held that the assessment order suffered from procedural irregularities and violated principles of natural justice. The Court set aside the impugned order dated 29.08.2024 and directed the appellant to deposit 25% of the disputed tax within four weeks from the date of receipt of the order. If any part of the tax had already been paid or recovered, the same would be adjusted toward the 25% requirement. Further held that the assessment order would be treated as a show cause notice, and the appellant would be allowed to file objections within four weeks, accompanied by relevant supporting documents. The assessing authority was directed to pass a fresh order after affording a reasonable opportunity of hearing.
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