Rishab Industries Vs Assistant Commissioner (ST) (Madras High Court)
The case of Rishab Industries vs. The Assistant Commissioner (ST) involved a challenge against an order dated 15.09.2023, primarily on the grounds that the petitioner was not provided with a reasonable opportunity to contest the tax demand on its merits.
Rishab Industries, engaged in wholesale and retail trading of plastic scraps and allied items, claimed that their GST compliance consultant failed to keep them informed about the proceedings leading up to the challenged order.
During the proceedings, the petitioner’s counsel highlighted that there was only a minor discrepancy of Rs. 19,341 between the petitioner’s GSTR 3B and the auto-populated GSTR 2A. They asserted that if given an opportunity, they could effectively explain and contest the tax demand. The petitioner also expressed willingness to remit 10% of the disputed tax demand.
The learned Government Advocate representing the respondent pointed out that the impugned order followed an intimation dated 19.05.2022, a show cause notice dated 08.06.2023, and a personal hearing notice dated 28.06.2023.
Upon examining the impugned order, it was found that Input Tax Credit (ITC) availed by the petitioner was reversed due to the disparity between their GSTR 3B returns and the auto-populated GSTR 2A. However, considering the minor nature of the discrepancy and to ensure fairness, the court deemed it just and necessary to grant the petitioner an opportunity to contest the tax demand on its merits.
