Prakash Contractor Vs DCIT (Madras High Court)
Summary: The Madras High Court set aside a GST assessment order dated 11.06.2025 against Prakash Contractor and remanded the matter for reconsideration because the petitioner’s reply and supporting documents were not taken into account by the assessing authority. The dispute related to the tax period April 2021 to March 2022 and concerned an alleged mismatch between the petitioner’s GSTR-3B returns and deductions made in respect of supplies under GSTR-7. The petitioner challenged the order in FORM GST DRC-07 bearing Reference No. ZD3306251066499 dated 11.06.2025 along with the detailed assessment order.
The petitioner submitted that, in response to the show cause notice, copies of the relevant GSTR-3B returns and details of TDS and TCS credit received during the relevant period had been enclosed. These documents, according to the petitioner, were not considered while passing the impugned order. The Court examined the reply on record and found that it specifically indicated that documents had been uploaded along with the reply, including the GSTR-3B returns and TDS/TCS credit details. In contrast, the impugned assessment order recorded that no reply had been submitted. This factual inconsistency persuaded the Court that reconsideration of the assessment was necessary.
The petitioner had, however, approached the High Court after expiry of the statutory period for filing an appeal. Without prejudice to its contentions, the petitioner therefore agreed to remit 10% of the tax demand under the impugned order as a condition for remand. The Court accepted this proposal and directed that the 10% amount be remitted within thirty days from receipt of a copy of the order. Subject to fulfilment of this condition, the impugned order was set aside and the matter remanded to the assessing authority.
