Vishnu Industries Vs Deputy State Tax Officer (Madras High Court)
Vishnu Industries challenged a tax demand order issued by the Deputy State Tax Officer for the financial year 2017-18 due to a mismatch between its GSTR-1 and GSTR-3B returns. The company had received a notice under Section 73(1) of the Tamil Nadu GST Act, 2017, but failed to respond or pay the disputed tax on time, leading to the issuance of the contested order. Later, Vishnu Industries filed an application for rectification on February 23, 2024, arguing that it had already deposited 108% of the disputed tax, including a 10% pre-deposit for appeal purposes. However, the rectification request remained undecided.
The Madras High Court, after considering both parties’ arguments, directed the tax authorities to address the rectification application within three weeks. It emphasized that the matter should be resolved in accordance with the law. With this order, the court effectively provided Vishnu Industries a chance to rectify the alleged discrepancies while ensuring tax compliance procedures are properly followed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition is filed challenging the impugned order Reference No.ZD3312232525001/2017-18 dated 28.12.2023 passed by the respondent.
2. It is submitted by the learned counsel for the petitioner that the petitioner is engaged in the business of manufacturing of Industrial components and allied and it is registered under the GST Act. During the relevant period of 2017-18, the petitioner has filed the returns and paid appropriate taxes. However, during the scrutiny of the petitioner’s return, it was found that there was a mismatch between GSTR 1 and GSTR 3B.
