Assessment Order to Be Quashed if Assessee’s Explanations to SCN Were Disregarded in Order & No Hearing Granted | HC

Case Details: Tvl. Saravanaa Projects & Co. v. Assistant Commissioner (ST) - [2024] 161 taxmann.com 429 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• D. Prabhu Mukunth Arunkumar for the Petitioner.
• Mrs K. Vasanthamala, Govt. Adv. (T) for the Respondent.

Facts of the Case

The petitioner was engaged in executing road contracts and civil contracts for Highways Department of the State of Tamil Nadu. It received a show cause notice, citing approximately ten discrepancies and the petitioner replied to the notice. However, the Assessing Officer (AO) issued order and the petitioner filed writ petition against the order. It was contended that the reply and its explanation were disregarded.

High Court Held

The Honorable High Court noted that the petitioner’s explanation was that an inadvertent mistake was committed while filing the GSTR 9C return and in support of this contention, the certificate of the Chartered Accountant was submitted. Also, the petitioner had explained the disparity between the turnover reported in returns filed under the GST enactments and the turnover reflected in the profit and loss account. However, this aspect was disregarded while confirming the demand. Moreover, no opportunity of personal hearing was granted after submission of reply to provide explanations.

Therefore, the Court held that the impugned order was to be quashed and the petitioner was directed to submit all relevant documents before the department within a period of 15 days.