Rajat Foods India Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court held that matter of mismatch of ITC between GSTR-3B and GSTR-1 remanded back for fresh consideration since non-appearance on the part of the assessee was due to the fact that accountant was not doing well.
Facts- The petitioner is a registered tax payers and have been filing monthly returns and remitting tax properly as per the TNGST Act, 2017. On 08.06.2023, a notice came to be issued by the respondent alleging that there was mismatch of input tax claim under Section 73(5) of the Act.
The grievance of the petitioner is that they had an accountant and the entire documents were available with the accountant and since he was not doing well, he was not able to attend the hearing. The petitioner was also unaware of the issuance of the demand order. It is under these circumstances, the present writ petition was filed before this Court.
Conclusion- Held that notice was issued by the respondent but however, the case was handled by his accountant who did not attend the personal hearing. On going through the impugned order, it is seen that a total tax liability of Rs.5,89,004/- has been imposed against the petitioner. The petitioner has come up with a clear case that there are sufficient materials/documents to substantiate the defense of the petitioner to the effect that there was no mismatch of the input tax claim between GSTR 3B and GSTR 1. Thus, the impugned order passed by the respondent is hereby set aside. The matter is remanded back to the file of the respondent for fresh consideration on condition that the petitioner will pay 10% of the disputed tax amount to the respondent within a period of four weeks from today.
