Sri Lakshmi Silvers Vs State Tax Officer (Madras High Court)
The Madras High Court recently adjudicated on the case of Sri Lakshmi Silvers vs State Tax Officer regarding procedural irregularities in an assessment order related to GST returns. This article provides a detailed analysis of the judgment and its implications.
The petitioner, engaged in the supply of base metals, contested an assessment order dated 11.07.2023, citing breaches of natural justice and failure to adhere to circulars governing the procedure for addressing disparities between GSTR-3B and GSTR-2A returns. The petitioner, reliant on the accountant, was unaware of the notice, leading to the issuance of the impugned assessment order.
The counsel for the petitioner argued that the petitioner was denied an opportunity to contest the tax demand and highlighted the non-compliance with circulars issued by the CBIC regarding the procedure for addressing disparities in returns. As a resolution, the petitioner agreed to remit 10% of the disputed tax demand.
The learned Government Advocate accepted notice on behalf of the respondent. It was observed that the tax demand solely pertained to the disparity between ITC claimed in GSTR-3B returns and that reflected in auto-populated GSTR-2A returns. Notably, there was no indication of the transaction being non-genuine in nature.
