High Court quashes tax violation orders, mandates fair review & independent verification

The High Court of Madras ruled in favor of the petitioner, a works contractor, in a case involving the violation of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017. The court quashed the impugned orders, directing a fresh review by the respondent with a requirement for a personal hearing. Additionally, the court instructed independent verification of materials provided by the petitioner and potential actions against departments failing to remit deducted tax amounts. The judgment emphasized the importance of ensuring a fair process and burden-sharing in tax matters, closing related petitions without costs.

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Issues: Violation of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017

In this judgment by the High Court of Madras, the petitioner, a works contractor, raised concerns regarding the deduction of tax by departments while settling bill amounts without confirmation of remittance. The petitioner's business was inspected, leading to the issuance of a show cause notice, followed by the passing of impugned orders without a personal hearing, which was deemed violative of Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017. Consequently, the court quashed the impugned orders, allowing the writ petitions and remitting the matter back to the respondent for fresh orders in compliance with the law, emphasizing the necessity of a personal hearing. The court also directed the respondent to independently verify the materials provided by the petitioner and consider taking action against departments that may have deducted tax amounts but failed to remit them, stating that the burden should not solely fall on the petitioner. The judgment concluded by closing the connected miscellaneous petitions without costs.

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