The Madras High Court, set aside the unreasoned GST ( Goods and Services Tax ) order issued confirming the tax liability in mismatch between Table 8A data of GSTR 9 and GSTR 2A, granting relief to Ford India.
The assessment order dated 18.03.2024 was challenged in the writ petition for being unreasoned. The proceedings against the petitioner pertained to the assessment period 2018-19 and were initiated through two show cause notices, each dated 27.12.2023.
The petitioner, Ford India Private Limited responded to these notices on 25.01.2024, leading to the dropping of proceedings by order dated 18.03.2024. However, the proceedings under the other show cause notice continued and culminated in the impugned assessment order.
The petitioner’s counsel highlighted that the petitioner had clarified in the reply that the input tax credit availed was lower than the amount reflected in the auto-populated GSTR-2A.
It was further submitted that the auto-populated GSTR-2A is dynamic, as it reflects data uploaded by the supplier in the GSTR-1 statement and GSTR-3B on an ongoing basis. The impugned proceedings were initiated by comparing the data in Table 8A of the annual return in GSTR-9 with the auto-populated GSTR-2A.
Referring to a CBIC press release dated 03.07.2019, the counsel pointed out that the Board acknowledged potential mismatches between Table 8A data and the auto-populated GSTR-2A.
Appearing on behalf of the respondent, Mr. V. Prashanth Kiran, Government Advocate, suggested that the matter be remanded for reconsideration, leaving it open for the assessing officer to address the mismatch issue.
The bench of Justice Senthilkumar Ramamoorthy observed that the GST proposal was confirmed without any reasoning. Thus, ruled that the impugned order cannot be sustained.
Therefore, the order dated 18.03.2024 was set aside and the matter was remanded for reconsideration. The respondent was also directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within three months from the date of receipt of a copy of this order. All contentions are left open to the petitioner. With the assessment order being set aside, the bank attachment is also lifted.
Ms. R.Charulatha appeared for the petitioner.
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