GST Demand Upheld for Non-Reply to SCN | Appeal Allowed with Deposit

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  • Last Updated on 5 February, 2026

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Non-Reply to SCN

Case Details: O K Travels vs. State Tax Officer [2026] 182 taxmann.com 711 (Madras)

Judiciary and Counsel Details

  • C. Saravanan, J.
  • P.P. Vikram for the Petitioner.
  • V. Prashanth Kiran, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner challenged the order, which confirmed a demand arose after the non-reply to the show cause notice issued in GST DRC-01, and it was therefore confirmed against the assessee. Subsequently, it filed an application for rectification of mistake under Section 161 of the CGST Act and the Tamil Nadu GST Act, seeking correction of the order. The rectification application was rejected. The assessee contended that the rejection of the rectification application was arbitrary and contrary to law. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the impugned order demonstrated that the jurisdictional officer under CGST and the jurisdictional officer under the Tamil Nadu GST Act complied with the procedural requirements of the respective GST enactments and the rules made thereunder. It was held that the assessee’s failure to respond to the show cause notice in GST DRC-01 rendered the demand’s confirmation legally sustainable. The High Court held that the rejection of the rectification application under Section 161 did not warrant interference.

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Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied