Subramani Babu Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court held that GST demand on account of mismatch between Form 26AS and GSTR 2B is liable to be set aside on payment of 25% of pre-deposit. Accordingly, opportunity of being heard will be granted on payment of directed pre-deposit.
Facts- The petitioner is registered under the Goods and Services Tax Act, 2017. During the relevant period 2018-19, the petitioner filed its returns and paid the appropriate taxes. However, on comparison of the taxable supplies reported by the petitioner in the GSTR 3B returns with Form 26 AS and GSTR 9/9C, it was noticed that there was mismatch between Form 26AS and GSTR 2B.
Accordingly, a notice in DRC-01 was issued on 07.08.2023. Further, reminder and personal hearing notice was issued on 26.03.2024. The petitioner submitted its reply on 03.04.2024, however the same was rejected on the premise that the reply was not supported by details or documents. It is thus submitted by the petitioner that if the petitioner is provided with an opportunity, they would be able to explain the alleged discrepancy.
Conclusion- Held that the impugned order dated 04.2024 is set aside. The petitioner shall deposit 25% of the disputed taxes as admitted by the learned counsel for the petitioner and the respondent, within a period of four weeks from the date of receipt of a copy of this order. If any amount has been recovered or paid out of the disputed taxes, including by way of pre-deposit in appeal, the same would be reduced/adjusted, from/towards the 25% of disputed taxes directed to be paid. The assessing authority shall then intimate the balance amount out of 25 % of disputed taxes to be paid, if any, within a period of one week from the date of receipt of a copy of this order. The petitioner shall deposit such remaining sum within a period of three weeks from such intimation.
