The Madras High Court has directed the swift disposal of a rectification application after the GST department failed to consider in the disputed GST order that imposed an interest rate of 14.5% on the petitioner.
The petitioner-assessee, Trupthi Enterprises challenged a GST assessment order dated 8th December 2022, seeking a directive for the respondent to refund ₹2,54,242/- along with interest, which was recovered from them.
The petitioner contended that they are not a manufacturer but merely a reseller. The returns filed by the petitioner under both the Tamil Nadu Value Added Tax Act, 2006, and the Central Sales Tax Act, 1956, were accordingly declared as sales.
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However, the assessment order in question directed the petitioner to pay interest at 14.5% instead of the applicable 5%. In response, the petitioner submitted a rectification application on 31st January 2023, arguing that since the full tax amount had already been recovered, they were entitled to a refund. The petitioner, therefore, requested that the assessment order be set aside.
V.Prashanth Kiran, the Government Advocate for the respondent submitted that while the petitioner had filed a rectification application, the department had not received it. Consequently, the petitioner was advised to file a fresh rectification application, as the time limit for doing so had not expired.
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Justice Krishnan Ramasamy directed the petitioner to file a copy of the rectification application within 15 days from the date of receiving the court’s order. The respondent was directed to dispose of the rectification application within four weeks, providing the petitioner an opportunity for a personal hearing.
Mr.V.Sundareswaran appeared for the petitioner.
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