Madras HC directs Reconsideration of GST Order involving Unreported E-Way Bills in GSTR 1 on additional 5% Pre-Deposit [Read Order]

In a recent ruling, the Madras High Court set aside and ordered the reconsideration of a GST ( Goods and Services Tax ) assessment involving unreported e-way bills in the GSTR-1 ( Goods and Services Tax Returns ) statement. The petitioner agreed to remit an additional 5% pre-deposit, supplementing the 10% already paid.

The petitioner's counsel argued that no business was conducted during the Covid-19 pandemic, leading to the filing of nil returns. Upon discovering the original order, the petitioner filed an appeal, which was subsequently rejected due to limitation issues.

It was also noted that the petitioner had already paid 10% of the disputed tax at the time of the appeal and was willing to remit an additional 5% as a condition for remanding the case to the original authority.

The respondent’s counsel pointed out that a notice in Form ASMT 10 dated 23.03.2023, a show cause notice dated 18.03.2023 and a personal hearing notice dated 27.03.2023 were issued to the petitioner.

The bench of Justice Senthilkumar Ramamoorthy noted that the impugned order related to two e-way bills that were not reported in the GSTR 1 statements. Given the petitioner's submission of unawareness regarding the proceedings, the court found it just to provide another opportunity to contest the tax demand, subject to certain conditions.

The court sets aside the orders dated 4th September 2023 and 12th April 2024, remanding the matter to the second respondent for reconsideration on a condition to remit an additional 5% of the disputed tax demand within two weeks from the receipt of a copy of the court's order. During this period, the petitioner was allowed to submit a reply to the show cause notice.

Upon receipt and verification of the additional 5% payment, the second respondent is instructed to provide a reasonable opportunity for the petitioner, including a personal hearing, and issue a fresh order within three months from the receipt of the petitioner's reply.

To Read the full text of the Order CLICK HERE

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