In a recent ruling, the Madras High Court addressed the issue of a mismatch between GSTR-01 and GSTR-3B/GSTR-2A/2B filed by the petitioner, a trader of automobile spare parts registered under the Goods and Services Tax ( GST ) Act, 2017.
The petitioner Supreme Agency challenged the order dated December 30, 2023, passed by the GST department authorities.
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During scrutiny of the petitioner’s monthly returns, discrepancies in filings were identified, leading to the issuance of a notice in DRC-01A on September 11, 2023, followed by a show cause notice on September 25, 2023.
Despite being granted an opportunity for a personal hearing, the petitioner neither responded nor attended the hearing, resulting in the confirmation of the proposed demand.
The petitioner argued that the show cause notices and the assessment order were not served in person or through registered post but were merely uploaded to the common portal. Due to issues accessing the portal, the petitioner claimed they could not participate in the adjudication process.
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The petitioner requested a fresh opportunity to explain the discrepancies, citing a recent judgment by the court in M/s. K. Balakrishnan, Balu Cables v. O/o. Assistant Commissioner of GST & Central Excise. The petitioner expressed willingness to deposit 25% of the disputed tax amount and sought the lifting of bank attachment orders.
Justice Mohammed Shaffiq set aside the impugned order and directed the petitioner to deposit 25% of the disputed tax. The bench also directed to lift the bank attachment once the pre-deposit is made.
The court directed to treat the assessment order as a show cause notice after the payment of the payment of deposit. The petitioner has been granted another four weeks to file objections with supporting documents.
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The bench directed the gst department to consider the objections and pass an order after a reasonable hearing. The writ petition was disposed of accordingly.
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