Court is Concerned with Decision Making Process not Correctness of Decision: Madras HC Directs to File appeal before GST Commissioner [Read Order]

The Madras High Court, in a manner involving wrong entry while filing Form GST DRC 3B for the assessment year 2017-18 under TNGST Act ( Tamil Nadu Goods and Services Tax Act) observed that the court is concerned with the decision making process and not the correctness of the decision.

The bench of Justice C. Saravanan stated as “This Court is not really concerned with the correctness of the decision in the impugned order. However, the Court is only concerned with the decision making process.”

The case was brought forward by Lekshmi Marketing, the assessee-petitioner, challenging the GST order passed by the respondent on December 23, 2023. The assessee argued that a wrong entry was made in Form GST DRC 3B, leading to the denial of income tax credit of Rs. 15,386.37 each towards Central Tax and State Tax. The error occurred while filing the income tax credit in Serial No. 4.A.(3) instead of Serial No. 4.A.(5).

The assessee’s counsel, Mr.M.Sudalai Muthu, explained that the mistake was due to the petitioner and their staff still familiarising themselves with the various forms required under the TNGST Act, 2017. The assessee had already responded to the show cause notice that preceded the impugned order.

The high court noted that the assessee has the alternative remedy of filing an appeal before the GST Appellate Deputy Commissioner, Madurai and Tirunelveli. The bench directed the assessee to file a statutory appeal within 30 days from the receipt of the order. The court instructed that if the assessee complies with the requirements under Section 107 of the TNGST statute, the Appellate Deputy Commissioner of GST should entertain the appeal and dispose of the case.  The assessee was entitled to all legal defences available, and the second respondent should consider the assessment order dated April 1, 2024, for the assessment year 2018-19 while passing the final order

To Read the full text of the Order CLICK HERE

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