GST Demand based on Mismatch in GSTR 3B return and auto-populated GSTR 2A: Madras HC directs Re-Adjudication [Read Order]

The Madras High Court directed re-adjudication of the Goods and Service Tax ( GST )  demand based on the mismatch between the GSTR-3B return and the auto-populated GSTR-2A.

An order in original dated 23.12.2023 is challenged on the ground that such order is unreasonable. Pursuant to show cause notice dated 30.09.2023, proceedings were initiated against the petitioner in respect of the mismatch between the petitioner's GSTR 3B and the auto populated GSTR 2A. The petitioner submitted reply dated 19.12.2023, wherein it was stated that the petitioner migrated to a new GST number on account of difficulties in using the original number

Mr.S.Ramanan representing the petitioner submitted that the impugned order was issued one day after issuing reminder 3 and that the petitioner's reply was not taken into consideration.

Mr.C.Harsha Raj, representing the Additional Government Pleader, accepted notice for the respondent. He points out that the petitioner was not entitled to avail of ITC which was reflected in a different GST number.

The bench noticed that the petitioner's reply was extracted. Thereafter, the assessing officer merely recorded that the reply is not acceptable and that the liability is confirmed. Since the conclusion is not supported by reasons, the impugned order is unsustainable.

Hence, the single bench of Justice Senthil Kumar Ramamoorthi noted that the impugned order dated 23.12.2023 was set aside and the matter was remanded for reconsideration. The respondent was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of a copy of this order. Accordingly, the writ petition was disposed of.

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Deva Enterprises vs The Assistant Commissioner , 2024 TAXSCAN (HC) 1406 , Mr.S.Ramanan , Mr.C.Harsha Raj