Case Law Details
Subh Sri Agencies Vs Deputy State Tax Officer (Madras High Court)
In a recent case before the Madras High Court, Subh Sri Agencies challenged an assessment order dated 04.07.2023, highlighting a significant disparity between their GSTR 3B returns and GSTR 2B statements. The crux of the issue lay in the Input Tax Credit (ITC) claim concerning customs duty. Despite the petitioner’s explanation in their response dated 17.03.2023, the tax demand was confirmed under the impugned order.
The petitioner’s counsel emphasized that the discrepancy stemmed from the ITC claimed on customs duty, which was not duly considered. The petitioner, willing to cooperate, agreed to remit 10% of the disputed tax demand as a condition for remand.
Responding to the petitioner’s plea, T.N.C. Kaushik, learned Additional Government Pleader, pointed out that the impugned order was issued within the statutory limitation for filing an appeal.
The petitioner’s reply of 17.03.2023 had elaborated on the disparity between their GSTR 3B return and GSTR 2A/2B return, attributing it to the customs duty. However, the impugned order disregarded this explanation, citing a lack of relevant documents. Recognizing the need for fairness, the Court quashed the order, subject to the condition of remitting 10% of the disputed tax demand within two weeks.
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