Sneh Communications Vs Deputy Commercial Tax Officer (Madras High Court)
Madras High Court held that order confirming demand due to mismatch between returns under GST set aside with condition to deposit 25% of disputed tax amount since petitioner neither replied to DRC-01 and neither attended personal hearing.
Facts- The petitioner is engaged in the business of Mobile and Mobile Accessories and is registered under the Goods and Services Tax Act, 2017. During the relevant period of 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, on verification of the petitioner’s monthly return it was found that there output mismatch between GSTR-3B and GSTR-1; TCS Mismatch between GSTR-8 and GSTR-1 and ITC variation between GSTR-3B and GSTR-2A.
Accordingly, an intimation in Form DRC-01 was issued on 31.01.2024. Further, personal hearing was offered on 18.07.2023, followed by reminder on 21.03.2024. However, the petitioner had neither filed its reply nor availed the opportunity for a personal hearing.
Conclusion- Held that the impugned order dated 19.09.2024 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.
