Sugos Steel Traders Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
Conclusion: Assessee should deposit 25% of the disputed tax within a period of four (4) weeks for a fresh hearing in matters engaging the discrepancies between GSTR-3B and GSTR-2A returns.
Held: Assessee was a registered dealer in iron, steel, and M.S. scraps under the CGST/TNGST Act, 2017, encountered scrutiny regarding the mismatches in returns. Even after filing returns and paying taxes, discrepancies occurred in scrutiny, prompting the issuance of a show cause notice (Form GST DRC-01) on February 7, 2024, through the GST portal. Subsequent to three reminder notices were being furnished however assessee neither furnished a response nor filed the tax amount, directing to the issuance of the impugned assessment order. The impugned order was challenged on the premise that the notices and orders were uploaded under the “view additional notices and orders” tab on the GST Portal, thereby, assessee was unaware of the initiated proceedings thus unable to participate in the adjudication proceedings. The limited issue that arose for consideration in the impugned order was whether the suppliers were allegedly fictitious/non existing entity. It was submitted by assessee that if assessee was provided with an opportunity, he would be able to explain the allegation in the impugned order. It was held that assessee should deposit 25% of the disputed tax within a period of four (4) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment should be treated as show cause notice and assessee should submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections were filed, the same should be considered by the respondent and orders should be passed in accordance with law after affording a reasonable opportunity of hearing to assessee. If the above deposit was not paid or objections are not filed within the stipulated period, i.e., four weeks respectively from the date of receipt of a copy of this order, the impugned order of assessment should stand restored.
