Sri Saru Pharma Vs Assistant Commissioner (ST) (Madras High Court)
The Madras High Court disposed of the writ petition at the admission stage with the consent of both parties. The petition challenged an order dated 17.02.2025 by which the demand proposed in a Show Cause Notice (DRC-01 dated 26.11.2024) for the tax period 2020–2021 was confirmed.
The petitioner had earlier filed a reply dated 26.04.2024, portions of which were extracted in the impugned order. The reply addressed an alleged outward supply mismatch between GSTR-1 and GSTR-3B for FY 2020–2021, where liability reported in GSTR-3B was lower than that in GSTR-1. The petitioner explained that the discrepancy arose due to double entry of GSTR-1 values, which inflated the taxable value for FY 2020–2021. According to the petitioner, although annual filings based on GSTR-1 reflected a difference, the error had been rectified in GSTR-3B.
The reply further referred to an earlier issue in FY 2019–2020, when returns were filed quarterly and a B2C value was incorrectly reported due to human error, resulting in a liability shortfall that was later corrected in June 2020. For FY 2020–2021, the petitioner stated that double entry of B2C values in GSTR-1 led to an apparent liability shortfall of ₹2,70,419.4, which was corrected in FY 2021–2022.
