Disparity of Rs. 1.1L in GST Demand Notice and Order: Madras HC sets aside Order [Read Order]

In a recent ruling, the Madras High Court sets aside the GST ( Goods and Services Tax ) order issued with a high disparity of Rs. 1.1 Lakhs in the demand notice and the order. The court observed that no reasons were mentioned by the authorities with respect to the same.

In this writ petition filed by Nanjappan Senthilkumar, challenged the validity of an order dated 10.10.2023. The petitioner, who received a notice on 22.06.2023 concerning discrepancies in filed returns and responded on 11.04.2023, contested the order's validity primarily on grounds of lack of reasoning and substantial disparity in the tax demand.

The petitioner's counsel submitted that the impugned order lacked proper justification. Referencing the show cause notice, the counsel asserted that there is a notable disparity between the total tax demand mentioned in the notice (Rs. 5570/-) and the confirmed tax proposal in the impugned order (Rs. 1,07,410/-).

Responding to the petition, Mr. C. Harsha Raj, Additional Government Pleader, acknowledged receipt of the petition on behalf of the respondent. However, he contended that the petitioner's approach to the court was belated.

Upon examination, the bench of Justice Senthilkumar Ramamoorthy found the impugned order to be deficient in providing reasons for its excess demand. Agreeing with the petitioner's counsel, the court noted the substantial variance in the tax demand, rendering the order unsustainable.

Consequently, the court set aside the impugned order dated 10.10.2023, allowing the respondent to initiate fresh proceedings in compliance with legal requirements. The writ petition was thus allowed, without any cost implications, while related interim applications were closed.

To Read the full text of the Order CLICK HERE

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