Amount Recovered by GST Authorities can be adjusted towards 25% Pre-deposit: Madras HC [Read Order]
The Court, noting no serious objection from the respondent’s counsel, directed the recovered amount to be adjusted toward the pre-deposit requirement
![Amount Recovered by GST Authorities can be adjusted towards 25% Pre-deposit: Madras HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/01/Amount-Recovered-GST-Authorities-GST-Adjusted-Towards-Pre-deposit-Madras-HC-Amount-Recovered-by-GST-Authorities-taxscan.jpg "Amount Recovered by GST Authorities can be adjusted towards 25% Pre-deposit: Madras HC [Read Order]")
In a notable decision, the Madras High Court has observed that the amount recovered by the Goods and Services Tax ( GST ) authorities can be adjusted towards 25% pre-deposit. The bench set aside the impugned order concerning the Assessment year 2018-19. The petitioner, a GST-registered entity, represented by a proprietor, had challenged the order citing discrepancies between taxable...
In a notable decision, the Madras High Court has observed that the amount recovered by the Goods and Services Tax ( GST ) authorities can be adjusted towards 25% pre-deposit. The bench set aside the impugned order concerning the Assessment year 2018-19.
The petitioner, a GST-registered entity, represented by a proprietor, had challenged the order citing discrepancies between taxable supplies reported in GSTR 3B returns and Form 26AS and GSTR 2B.
The petitioner argued that the alleged mismatch led to a tax demand notice issued in DRC-01 on 07.08.2023. Despite submitting a reply on 03.04.2024, the adjudicating authority rejected it, citing insufficient documentation.
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The petitioner sought an opportunity to clarify the discrepancies, relying on a similar case where the Court remanded the matter, subject to a 25% pre-deposit of disputed taxes.
During proceedings, the petitioner submitted that Rs.11,47,827 had already been recovered from the total demand of Rs.30,27,780, exceeding the 25% threshold.
The Court, noting no serious objection from the respondent’s counsel, directed this recovered amount to be adjusted toward the pre-deposit requirement.
Justice Mohammed Shaffiq set aside the impugned order, stipulating that the petitioner must deposit the balance of 25% disputed taxes, if any, within the specified timelines. It further instructed the GST department to verify payments, intimate any remaining amounts, and lift bank attachments or garnishee proceedings upon compliance.
To Read the full text of the Order CLICK HERE
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