Banyan Engineers Contractors Vs Deputy State Tax Officer-2 (Madras High Court)
In the case of Banyan Engineers Contractors vs. Deputy State Tax Officer-2, the Madras High Court addressed an issue concerning the discrepancy between GSTR 3B returns and GSTR 2A data, specifically focusing on Input Tax Credit (ITC) and turnover in the context of GST compliance.
The petitioner, an ex-serviceman engaged in construction work for government projects, received a show cause notice on 26th September 2023. This notice highlighted significant differences between the turnover reported in the petitioner’s GSTR 3B returns and the outward supplies reflected in GSTR 2A. The petitioner responded on 26th December 2023, explaining that delays in converting purchases into outward supplies accounted for the lower values in GSTR 3B. They also addressed the mismatch in Input Tax Credit claimed.
Subsequently, an order was issued on 28th December 2023, which the petitioner sought to appeal, requesting condonation of the delay in filing the appeal against this order.
During the proceedings, the petitioner’s counsel argued that the show cause notice did not originally encompass the issue of ITC mismatch, which was central to the order. This discrepancy, they contended, warranted interference since the petitioner was not given an opportunity to address this specific aspect before the order was issued.
