Tvl.Sri Vasupujya Jewels Vs State Tax Officer (Madras High Court)
Madras HC directs Adjustment of amount recovered or paid including GST pre-deposit in Appeal towards requirement of payment of 10% Pre-deposit
Conclusion: Where any amounts recovered or paid, including pre-deposits made in Goods and Services Tax (GST) appeal, the same should be reduced or adjusted against the mandatory 10% pre-deposit requirement. Any recovery by way of attachment of Bank account or garnishee proceedings, the same should be lifted /withdrawn on complying with the condition viz., payment of 10% of the disputed taxes.
Held: Assessee was a registered taxpayer under the GST Act, 2017, contested discrepancies in their returns, including mismatches between GSTR-3B, GSTR-1, and GSTR-2A. Despite filing a response to a notice issued under Form GST DRC-01, the reply was rejected due to a lack of supporting documents. Assessee argued that assessment order and notices were uploaded only on the GST portal without proper service, depriving them of a fair opportunity to participate in the proceedings. Assessee had requested one final chance to address the discrepancies and relied on a prior judgment in Sree Manoj International vs. Deputy State Tax Officer, where the matter was remanded upon payment of 10% of the disputed taxes. Assessee expressed willingness to deposit 10% of the disputed amount, which was not opposed by Revenue. It was held that if any amount had been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 10% of disputed taxes directed to be paid. AO should then intimate the balance amount out of 10% of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. Assessee should deposit such remaining sum within a period of three weeks from such intimation. The entire exercise of verification of payment, if any, intimation of the balance sums, if any, to be paid for compliance with the direction of payment of 10% of the disputed taxes, after deducting the sums already paid and payment by assessee of the balance amount, if any, on intimation in compliance with the above direction should be completed within a period of four weeks from the date of receipt of copy of this order. Failure to comply with the above condition viz., payment of 10% of disputed taxes within the stipulated period i.e., four weeks from the date of receipt of a copy of this order should result in restoration of the impugned order. Any recovery by way of attachment of Bank account or garnishee proceedings, the same should be lifted /withdrawn on complying with the above condition viz., payment of 10% of the disputed taxes.
