GST Pre-deposit for Final Hearing Opportunity can be Adjusted from Excess Tax Paid: Madras HC [Read Order]
Considering the request of the petitioner, the respondent authority was instructed to consider the excess tax payment when calculating the 25% requirement
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In a recent ruling, the Madras High Court ruled that amounts paid in excess of admitted tax liabilities can be adjusted against the pre-deposit requirement for a final hearing opportunity in Goods and Services Tax ( GST ) disputes. The petitioner, Sri Murugan Typewriting Institute, engaged in teaching typewriting services and registered under the GST Act, 2017, challenged an assessment...
In a recent ruling, the Madras High Court ruled that amounts paid in excess of admitted tax liabilities can be adjusted against the pre-deposit requirement for a final hearing opportunity in Goods and Services Tax ( GST ) disputes.
The petitioner, Sri Murugan Typewriting Institute, engaged in teaching typewriting services and registered under the GST Act, 2017, challenged an assessment order dated October 27, 2023, concerning the financial year 2019-2020.
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The order came to pass from discrepancies between GSTR-1 and GSTR-3B returns, leading to the issuance of notices under Forms ASMT-10 and GST DRC-01. Despite reminders, the petitioner neither filed a reply nor paid the disputed tax, culminating in the impugned order.
It was argued that notices and orders were only uploaded on the GST portal and not served through registered post or personal tendering, rendering them inaccessible. This lack of access prevented participation in adjudication proceedings.
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The petitioner also contended, apart from the 10% which was paid before the appellant authority, that an excess amount of ₹10 lakh, paid beyond the admitted tax liability, could be adjusted against the 25% pre-deposit requirement for filing objections.
Justice Mohammed Shaffiq, noting the cited precedent of M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise (W.P.(MD) No. 11924 of 2024), set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax within four weeks.
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Considering the request of the petitioner, the respondent authority was instructed to consider the excess tax payment when calculating the 25% requirement.
Additionally, the Court ordered the immediate lifting of bank account attachments imposed as part of recovery proceedings, contingent on compliance with the pre-deposit directive. Failure to meet the stipulated conditions would result in the restoration of the impugned order.
To Read the full text of the Order CLICK HERE
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