2025 (2) TMI 350 - HC - GST

Challenge to impugned order on the limited ground that the impugned order insofar as the amount of tax demanded in the impugned order is in excess of the amount which was specified in notice under DRC 01 - HELD THAT - In view of the peculiar facts it was suggested that Rs. 2 crores may be paid and the matters be remanded back for a fresh consideration which was agreed to by both the learned counsel for the petitioner as well as for the respondents. The matters are remanded back to the assessing officer for a de novo consideration subject to the condition the petitioner pays the amount of Rs. 2 Crores within a period of 3 weeks from the date of receipt of a copy of this order. The impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. Petition disposed off by way of remand.

Summary

In the case before the Madras High Court, presided over by Honourable Mr. Justice Mohammed Shaffiq, the petitioner challenged an order dated 16.08.2024, arguing that the tax amount demanded exceeded what was specified in the notice under DRC 01. Initially, the notice demanded Rs. 54.50 Crores based on over 25 issues, but the petitioner successfully contested most, reducing the liability to nearly Rs. 51 Crores. However, the impugned order levied a tax of Rs. 137 Crores, which the petitioner claimed violated Section 75(7) of the Act as it exceeded the amount specified in the show cause notice.The respondent's counsel argued that the show cause notice did not quantify all issues, leading to the excess demand. The court suggested, and both parties agreed, that Rs. 2 Crores be paid, and the matter be remanded for fresh consideration.The court ordered the matter to be remanded to the assessing officer for a de novo consideration, contingent on the petitioner paying Rs. 2 Crores within three weeks. The impugned order was to be treated as a show cause notice, with the petitioner required to submit objections within four weeks. If these conditions are not met, the impugned order will be reinstated. The writ petition was disposed of with no costs, and any connected miscellaneous petitions were closed.