Contractor Wins Challenge: GST Penalty Quashed and Remanded for Fair Reassessment Under Section 73

HC Madras quashed 100% penalty on GST dues for a civil works contractor who filed a rectification application after receiving an assessment order. The court remanded the matter to the assessing officer for reconsideration of penalty within two months, providing relief to the petitioner regarding the penalty imposition under section 73 of TNGST Act.

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Issues involved: Challenge to order dated 01.12.2023 on rectification application under GST laws.

Details of the Judgment:

Issue 1: Rectification Application and Penalty Imposition
The petitioner, a civil works contractor registered under GST laws, received a notice in Form GST-ASMT-10 for discrepancies in the return, followed by a notice u/s 73 of the TNGST Act. An assessment order was issued on 04.09.2023, after which the petitioner applied for rectification on 20.11.2023, admitting a tax liability of Rs. 12,22,432. The petitioner sought relief from penalty, challenging the imposition of 100% penalty on SGST dues despite the notice being u/s 73. The impugned order was quashed to the extent of penalty imposition under the revenue abstract, remanding the matter for re-consideration by the assessing officer within two months from the date of the order.

Conclusion:
The High Court of Madras disposed of W.P.No.1848 of 2024 on the above terms, with the related W.M.P.Nos.1921 and 1922 of 2024 being closed as a consequence of the judgment.

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