GST Case Law Update: Ramco Cement Limited Vs Deputy Commissioner (ST) (Madras High Court)

The court has set aside the impugned order dated 28.03.2024 in respect of six issues raised in the show cause notice and confirmed in the order, subject to the condition that the petitioner remits 10% of the disputed tax demand relating to those six issues within 15 days.

Summary

  • Background: The petitioner challenges an assessment order dated 28.03.2024, which was issued following a show cause notice and a personal hearing.
  • Petitioner’s Arguments: The petitioner argues that the assessment order violates principles of natural justice because it deals with two new issues not raised in the show cause notice, and because it makes contradictory conclusions regarding the sale of old vehicles and ITC reversal for exempted supplies.
  • Respondent's Arguments: The respondent argues that the two new issues arose from the petitioner's reply, and that the assessment order is essentially a show cause notice on those issues. The respondent also contends that principles of natural justice were followed, and the petitioner's reply was considered.
  • Court's Findings: The court finds that the assessment order violated principles of natural justice by addressing new issues without prior notice to the petitioner. The court also agrees that the conclusions regarding the sale of old vehicles and ITC reversal for exempted supplies are incompatible and contradictory.
  • Court's Decision: The court sets aside the assessment order in respect of the six issues raised in the show cause notice and confirmed in the order. The petitioner is required to remit 10% of the disputed tax demand within 15 days and can then submit a reply to the two new issues within that period. The respondent is then directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months of receiving the petitioner's reply.

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