Muthu Traders Vs Deputy Commercial Tax Officer (Madras High Court)
The case of Muthu Traders vs. Deputy Commercial Tax Officer before the Madras High Court involves a challenge to an order dated 10.07.2023, alleging that the petitioner was not given a fair opportunity to contest a tax demand related to GST discrepancies.
The petitioner, engaged in trading groceries and allied products, claims ignorance of GST compliances and asserts that a consultant was engaged for such matters. However, due to the consultant’s failure to inform the petitioner about the proceedings leading to the impugned order, the petitioner was unaware of the developments.
The confirmed tax demand arises from a mismatch between the petitioner’s GSTR 3B returns and the auto-populated GSTR 2A. The petitioner seeks an opportunity to explain the discrepancy and is willing to remit 10% of the disputed tax demand as a condition for remand.
The learned Additional Government Pleader for respondents 1 & 2 acknowledges the notice and points out that the impugned order followed due process, including intimation, show cause notice, and a personal hearing notice.
Upon reviewing the impugned order, the court observes that the tax liability stems from the discrepancy between the petitioner’s GSTR 3B returns and the auto-populated GSTR 2A. However, the tax demand was confirmed because the petitioner failed to respond or appear for the personal hearing. Considering the circumstances, the court deems it just and necessary to provide the petitioner with an opportunity to contest the tax demand on merits.
