In a recent ruling, the Madras High Court remanded the case concerning a GST ITC discrepancy for reconsideration, imposing a pre-deposit condition of Rs. 1.4 crore as there was a clear violation of the principles of natural justice. In this case, M/s.Aadhi Cars Private Limited has approached the Madras High Court against the order passed by the Department for the period 2018-2019.

Become PF & ESIC Pro: Basic to Advance Course – Enroll Today The counsel on behalf of the petitioner contended that the respondent issued multiple notices, including a DRC-01 dated 15.07.2022 and another on 26.09.2023, citing discrepancies in tax payments and ITC claims for different periods. The petitioner responded to these notices with supporting documents, leading to a Drop Proceedings order dated 16.12.2023. Despite this, an ADT-01 notice dated 21.04.2023 and a subsequent Show Cause Notice dated 09.01.2024 were issued, with one discrepancy overlapping the earlier notice. The petitioner further contends that these actions result in a multiplicity of proceedings and violate natural justice, as some notices were served solely via the GST portal, limiting access.

The petitioner seeks an opportunity to present a reply with supporting documents and is willing to pay an amount as fixed by the Court. Become PF & ESIC Pro: Basic to Advance Course – Enroll Today The High Court observed that the multiple overlapping of notices signify that the respondent has not applied mind. The bench was of the opinion that the petitioner did not file a reply to the show cause notice dated 09.01.2024 due to the confusion caused by repeated allegations and the complexity of the ongoing proceedings. Become PF & ESIC Pro: Basic to Advance Course – Enroll Today The bench set aside the impugned order and directed the t to provide the petitioner an opportunity to file a reply/objection along with supporting documents. The Court, comprising Justice Krishnan Ramaswamy, remanded the matter to the respondent for fresh consideration, on the condition that the petitioner pays a sum of Rs. 1,40,00,000 to the respondent within four weeks from the date of receipt of a copy of this order.