Ramesh Associates Vs State Tax Officer (Int) (Madras High Court)
Madras High Court held that since petitioner failed to respond to notice issued for mismatch between GSTR-3B and GSTR-2A and non-payment of interest, it is directed that opportunity to explain discrepancies will be granted on payment of 25% of disputed tax.
Facts- The petitioner is engaged in the business of providing works contract service to the vendors of Indian Oil corporation and Hindustan Petroleum and is registered under the GST Act. During the relevant period of 2017-18, the petitioner has filed the returns and paid appropriate taxes. However, on a surprise inspection dated 04.07.2023 conducted at the petitioner’s businesss premises, mismatch between GSTR 3B and GSTR 2A and non-payment of interest on delayed payment of tax was detected.
An intimation in Form DRC 01A was issued on 11.09.2023 followed by a notice in DRC 01 on 26.09.2023. However, the petitioner had not responded to any of the above notices / intimation and the impugned order came to be passed.
Conclusion- Held that the impugned order dated 11.01.2024 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. The impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner. If the above deposit is not paid or objections are not filed within the stipulated period, i.e., four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment shall stand restored.
