Case Law Details
Tvl. Vishal Agencies Vs Assistant Commissioner (ST) (Madras High Court)
The recent judgment by the Madras High Court in the case of Tvl. Vishal Agencies Vs Assistant Commissioner (ST) addresses the issue of discrepancies between GSTR 1 and GSTR 3B returns. The court’s mandate for a 10% pre-deposit to contest such discrepancies has significant implications for taxpayers.
The case revolves around an assessment order dated 19.10.2023, wherein the petitioner contested a tax demand, citing lack of reasonable opportunity to challenge it on merits. The discrepancy between the petitioner’s GSTR 1 statement and GSTR 3B returns prompted the issuance of a notice in Form GST ASMT 10 on 24.05.2023, followed by a show cause notice and a reminder.
Upon scrutiny, it was revealed that the petitioner had reconciled the discrepancy in its GSTR 9C return by paying the unreconciled amount in April 2018. However, definitive conclusions couldn’t be drawn, necessitating further examination by the respondent.
During the proceedings, the petitioner agreed to remit 10% of the disputed tax demand as a condition for remand. Consequently, the impugned order dated 19.10.2023 was set aside, and the matter was remanded for reconsideration, subject to the condition of the pre-deposit within two weeks.
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