Case Details: Tvl. Sri Yogiram Traders Versus Commissioner of Commercial Taxes (2025) 27 Centax 242 (Mad.)
Judiciary and Counsel Details
- K. Kumaresh Babu, J.
- Shri B. Rooban for the Petitioner.
- Shri R. Suresh Kumar, Addl. Govt. Pleader for the Respondent.
Facts of the Case
The petitioner, a registered taxpayer under the Central Goods and Services Tax Act, 2017, was issued a Show Cause Notice (SCN) alleging non-compliance with e-way bill requirements under Section 68 of the CGST Act, 2017 & TN GST Act, 2017. The SCN indicated a consolidated amount, prompting the petitioner to contend that it comprised multiple invoices, each valued below ₹1 lakh, and thus exempt from e-way bill compliance. The petitioner challenged the SCN before the Madras High Court, asserting that no individual invoice exceeded the prescribed threshold, and therefore, the demand raised in the SCN was not legally sustainable. However, the Revenue opposed the claim, arguing that the petitioner failed to produce supporting invoice documents to substantiate the assertion. Given the absence of documentary proof, the authorities proceeded with the demand.
High Court Held
The Hon’ble Madras High Court held that the matter warranted reconsideration. The impugned order was set aside with directions to the petitioner to submit invoices and raise issues regarding inward invoices before the authority. The authority was directed to provide a hearing opportunity and pass a reasoned order within two weeks thereafter. The writ petition was allowed, affirming that e-way bill exemption for invoices below ₹1 lakh is subject to the assessee furnishing documentary proof.
