In the allegations of difference in Input Tax Credit ( ITC ) under Integrated Goods and Services Tax ( IGST ) of Rs.10.2L in GSTR 3B and 2A, the Madras HC has granted a final chance to explain the issues for the assessment year 2018-19.
SRT Fuels, the petitioner challenged an order dated 27.04.2024, issued by the respondent, citing a mismatch of ₹10,22,809 between the ITC claimed in GSTR-3B and the ITC reflected in GSTR-2A.
The petitioner, a registered business under the GST Act, contended that although returns and taxes were duly filed and paid, the discrepancy was identified during scrutiny. Notices were issued in Form GST DRC-07 and Form GST DRC-01, and a personal hearing was scheduled.
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However, the petitioner neither responded to the notices nor attended the hearing. The petitioner claimed that the notices and the assessment order were uploaded on the GST portal under the “Additional Notices and Orders” tab without proper service, leaving them unaware of the proceedings.
The petitioner sought an opportunity to explain the discrepancies and relied on a precedent set by the Court in the case of M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise, where a similar matter was remanded, subject to a 25% pre-deposit of the disputed tax.
After hearing the arguments, the Justice J. Sathya Narayana Prasad set aside the impugned order and provided specific directions to address the matter. Firstly, the petitioner is required to deposit 25% of the disputed tax within two weeks from the date of receiving the order. This pre-deposit is a prerequisite for further proceedings in the case.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Further, the Court directed that the impugned assessment order be treated as a show cause notice on compliance of the pre-deposit condition.
The petitioner was then directed to file objections to the assessment within four weeks, supported by relevant documents or evidence to substantiate their claims. The GST department-respondent was also directed to adjudicate the matter after hearing.
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