High Court of Madras
Tvl. Technocast Foundry v. State Tax Officer
W.P. NOS. 29580, 29996 AND 30242 OF 2025
The ruling in brief
Where registered manufacturer failed to maintain job-work records or file prescribed Form ITC-04 due to alleged technical issues, and could not prove receipt of goods within timelines, movement was deemed as supply and tax, interest and equal penalty were correctly confirmed, with extended period invocation upheld since exceptions were not attracted and threshold under GST for such invocation was lower
Where registered manufacturer sent goods to sister concern for job work but failed to maintain job-work records or file prescribed form, and department treated such transfers as deemed supplies with tax, interest, and penalty, remand for verification was warranted to examine revenue neutrality and onus was on petitioner to establish tax payment by principal or job worker, with adjudication on factual merits to follow
Provisions considered
Section 74, read with section 143 of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017 - Rule 45 of Central Goods and Services Tax Rules, 2017/Tamil Nadu Goods and Services Tax Rules, 2017; Section 143 of Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017 - Rule 45 of Central Goods and Services Tax Rules, 2017/Tamil Nadu Goods and Services Tax Rules, 2017