The Madras High Court ordered a pre-deposit of 10% for contesting the Goods and Services Tax ( GST ) demand which confirmed failure to respond to the Goods and Services Tax ( GST ) proceedings as uploaded in the portal with respect to the GST returns disparity. The bench raised the bank account attachment as the order was set aside on pre-deposit condition.
The Petitioner, Mayur Granites submitted that they were unaware of the proceedings leading to the impugned order as it was uploaded solely on the GST portal without any other form of communication.
By pointing out that the tax demand pertains to discrepancy between the petitioner’s GSTR 3B returns and the auto-populated GSTR 2A returns, the petitioner’s counsel submitted that the petitioner would be in a position to explain the discrepancy satisfactorily if provided an opportunity.
On instructions, counsel for the petitioner submits that, as a condition for remand, the petitioner is willing to remit 10% of the disputed tax demand.
Mrs. K. Vasanthamala, representing the government, acknowledged the show cause notice preceding the impugned order, contending that the petitioner had adequate opportunity to contest the tax demand.
The court noted that the tax proposal had been confirmed due to the petitioner’s failure to file objections or participate in the personal hearing. However, considering the petitioner’s assertion of being able to clarify the discrepancy if given a chance, the court deemed it just and appropriate to grant them an opportunity under certain conditions.
Accordingly, the impugned order was set aside and the matter is remanded to the first respondent for reconsideration subject to the condition that the petitioner remits 10% of the disputed tax demand as agreed to within a period of fifteen days from the date of receipt of a copy of this order.
The petitioner is also permitted to submit a reply to the show cause notices within the aforesaid period.
Upon receipt of the petitioner’s reply and upon being satisfied that 10% of the disputed tax demand was received, the first respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue fresh orders within a period of two months from the date of receipt of the petitioner’s reply.
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