Case Law Details
Jinvar Trading Company Vs Commercial Tax Officer-2 (Madras High Court)
Introduction: In a recent judgment, the Madras High Court addressed the case of Jinvar Trading Company vs. Commercial Tax Officer-2, where a significant issue arose due to discrepancies between the GSTR 3B returns and the GSTR 1 statements. The petitioner, Jinvar Trading Company, contended that the mismatch was caused by an erroneous GST calculation at 36% for certain items. This article delves into the detailed proceedings, the court’s analysis, and the final judgment that called for a reconsideration of the case.
Detailed Analysis: The case stemmed from an order dated October 30, 2023, which Jinvar Trading Company challenged on the grounds of not having a reasonable opportunity to contest the tax demand. The core of the issue was a mismatch between the GSTR 3B returns and GSTR 1 statements, reportedly due to a 36% GST calculation error on certain items during the relevant assessment period.
1. Petitioner’s Argument: The petitioner argued that they were unaware of the proceedings leading to the impugned order. The oversight was attributed to the part-time accountant’s failure to check the “View Additional Notices and Orders” tab on the GST portal. This lapse resulted in the non-receipt of crucial notices and orders. The petitioner’s counsel highlighted that a sum of ₹68,677/- had been recovered from the electronic credit ledger, a significant portion of the disputed tax liability of ₹92,423/-.
2. Respondent’s Defense: The Government Advocate, representing the respondent, contended that sufficient opportunity had been provided to the petitioner to contest the tax demand. Notices were issued in Form ASMT 10, and a show cause notice had been duly served.
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