Court Interference is needed on GST Order which raises Liabilities not addressed in SCN: Madras HC

In a recent ruling, the Madras High Court intervened in a GST dispute where the petitioner, Banyan Engineers Contractors, sought relief against an order dated December 28, 2023. The petitioner, engaged in government construction projects, received a show cause notice regarding discrepancies in GST returns. Despite explanations provided, an order was issued that included new liabilities not mentioned in the notice. The court, led by Justice Senthilkumar Ramamoorthy, found the discrepancy serious enough to warrant intervention, despite the petitioner missing the appeal deadline. Conditions were set for reconsideration, including remitting 10% of the disputed tax within 15 days and allowing the petitioner to respond to the notice. The court directed a fresh decision within three months after receipt of the petitioner's reply. This case underscores the court's role in ensuring procedural fairness in GST matters.