Tanveer S/o Gulamhusain Gavandi Vs State of Karnataka (Karnataka High Court)
In Tanveer vs State of Karnataka, the Karnataka High Court examined a challenge to an order dated 18.08.2023 passed under Section 73(9) of the KGST Act, 2017 for the financial year 2017–18, wherein tax, interest, and penalty were determined. The petitioner also sought protection from coercive recovery.
The petitioner, a registered dealer engaged in iron and steel business, was subjected to scrutiny under Section 61. Notices were issued in Form ASMT-10 highlighting discrepancies between GSTR-3B, GSTR-1, and GSTR-2A. This was followed by pre-intimation in Form DRC-01A, a show cause notice under Section 73(1), and ultimately the impugned order confirming liability. The demand was based on differences in outward supplies, alleged ITC mismatch, and consequential interest and penalty.
The petitioner contended that the order was mechanical and failed to consider reconciliation statements. It was argued that ITC cannot be denied solely on GSTR-2A mismatch and that no effective personal hearing was granted as required under Section 75(4). The discrepancies were attributed to bona fide reporting errors during the initial GST implementation phase. Reliance was placed on Circular No.183/15/22-GST permitting reconciliation.
The respondents opposed the petition, citing availability of an alternative appellate remedy under Section 107 and asserting that adequate opportunity had been given. They maintained that the petitioner failed to respond to notices and that the order was based on verification of returns and records.
