GST Demand on Non-Taxable Receipts: Madras HC Dismisses petition on Availability of statutory remedy [Read Order]

The High Court of Madras dismissed the writ petition challenging the Goods and Service Tax (GST) demand on non-taxable receipts, citing the availability of a statutory remedy.

Ragem Motors, petitioner-assessee, challenged the assessment order issued by the respondent for the Assessment Year 2017-18 through this writ petition.

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The Court took up the writ petition for final disposal with the consent of both sides. The petitioner’s counsel argued that GST had been paid on reported income and that the demand on non-taxable receipts, such as CENVAT credit, income tax refund, and interest income, was unjustified. It was also contended that the respondent issued a non-speaking order without properly verifying documents or considering the reply to the show cause notice.

Read More:Existence of Statutory Remedy: Madras HC refuses to quash GST Demand Notice

The respondent’s counsel stated that the petitioner had an appeal remedy before the Deputy Commissioner (CT) (GST Appeal), Madurai, but approached the Court instead.

Read More: GST dept rejects 60 Pages Detailed Objections on Demand Order  in ‘One Line’: Madras HC sets aside Non-Speaking Order

A single member bench comprising Vivek Kumar Singh (Justice) dismissed the writ petition, noting that the petitioner had an appeal remedy before the Deputy Commissioner (CT) (GST Appeal), Madurai, under Section 107 of the GST Act, 2017. However, liberty was granted to file an appeal within two weeks, and the appellate authority was directed to consider it without limitation concerns and decide within two months.

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Section 107 of the GST Act allows an appeal against an order within three months, with a one-month extension if justified. A 10% pre-deposit of the disputed tax is required. The department can appeal within six months. The Appellate Authority may confirm, modify, or annul the order, and a further appeal can be made to the GST Tribunal under Section 112 of the Act.

Read More: 41% disputed GST recovered without Providing Hearing opportunity: Madras HC sets aside Demand Order

In short,the writ petition was dismissed.

To Read the full text of the Order CLICK HERE

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