Sugos Steel Traders Vs State Tax Officer (Madras High Court)
Mismatch between GSTR-3B and GSTR-2A not explained during assessment: Madras HC grants opportunity
In a recent ruling Hon’ble Madras HC considered that there is mismatch between GSTR-3B and GSTR-2A and petitioner is ready to pay 25 % of the total tax in dispute. HC granted on more opportunity to the petitioner after complying the directions.
The petitioner is a registered dealer in iron, steel and scraps under the CGST/TNGST who filed its return and paid appropriate taxes. The competent authority find mismatch between GSTR3B and GSTR2A. Subsequently, a show cause notice in Form GST DRC-01 was issued to the petitioner on 07.02.2024 through GST Portal along with an opportunity of personal hearing, followed by three reminder notices dated 15.03.2024, 27.03.2024 and 18.04.2024. However, the petitioner had neither filed its reply nor paid the tax amount. Hence, the impugned order came to be passed confirming the proposals.
The limited issue that arises for consideration in the impugned order is the alleged mismatch between GSTR-3B and GSTR-2A which can be explained by the petitioner if one more opportunity be granted to it. Petitioner placed reliance upon the recent judgment of this Court in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 dated 10.06.2024 and submitted that it ready and willing to pay 25% of the disputed tax to which department did not raise any objection.
