Matter to Be Remanded Back for Reconsideration Since Assessee’s Reply and Documents Were Not Taken Into Consideration | HC

Case Details: Tvl. Kavinkumar Textiles v. Deputy State Tax Officer - [2024] 162 taxmann.com 401 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • S. Rajasekar, & Ms R. Hemalatha for the Petitioner.
  • T.N.C. Kaushik, Addl. Govt. Pleader (T), for the Respondent.

Facts of the Case

The department had initiated proceedings against the petitioner pursuant to an inspection. An intimation was issued and the petitioner replied to same. Thereafter, a show cause notice (SCN) was issued and the petitioner replied to SCN. The order was issued and the petitioner filed writ petition against the same. It was contended that it replied to SCN regarding issues of discrepancy in turnover and reversal of ITC claimed in respect of purchases and also provided documents to support its reply.

High Court Held

The Honorable High Court noted that in the impugned order, the department had recorded the finding that the petitioner had only replied with regard to the tax and not with regard to penalty. However, the reply to SCN was submitted by the petitioner but the authority passed the order without considering the response submitted by the petitioner. Moreover, the order was passed without providing any personal hearing. Therefore, the Court noted that this finding was not correct and the impugned order was liable to be set aside.