Supreme Agency Vs Deputy State Tax Officer (Madras High Court)
Madras High Court held that order confirming demand due to mismatch between GSTR-01 and GSTR-3B/GSTR-2A/2B set aside as petitioner failed to furnish any reply. Accordingly, petitioner directed to deposit 25% of disputed tax amount.
Facts- The petitioner is engaged in business of trading and supply of automobile spare parts and is a registered dealer under the Goods and Services Act, 2017. During the relevant period, the petitioner filed its return and paid the appropriate taxes. While scrutinizing the petitioner’s monthly return, it was noticed that there was mismatch between GSTR-01 and GSTR-3B/GSTR-2A/2B. Subsequently, a notice was issued to the petitioner in DRC 01A on 11.09.2023, followed by a Show Cause Notice in DRC-01 dated 25.09.2023. The petitioner was also given opportunity of personal hearing on 30.10.2023 and reminder on 28.12.2023. However, the petitioner had neither filed its reply nor availed the opportunity of personal hearing. Hence, the impugned order came to be passed, confirming the proposal.
Conclusion- Held that the impugned order is set aside and the petitioner shall 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 shall be treated as show cause notice and the petitioner shall 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 are filed, the same shall be considered by the respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner.
