Unaware of GST Proceedings in GSTR 3B and GSTR 2A Mismatch: Madras HC grants Hearing Opportunity on 10% Pre-deposit [Read Order]

The Madras High Court granted a hearing opportunity after a 10% pre-deposit, despite being unaware of the GST proceedings in GSTR 3B and GSTR 2A mismatch.

The petitioner asserts that it was unaware of proceedings culminating in the impugned assessment order until a phone call was received from the Vijaya Bank on 27.05.2024. The present writ petition was filed in the said facts and circumstances.

Mr. J.Ashish representing the petitioner submitted that the tax proposal pertains to a mismatch between the GSTR 3B returns and the auto-populated GSTR 2A. He further submits that the discrepancy was reconciled while the reconciliation statement in Form GSTR 9C was filed. If provided an opportunity, learned submits that the petitioner would be in a position to persuade the respondent to drop the tax proposal. On instructions, he submits that the petitioner agrees to remit 10% of the disputed tax demand as a condition for remand.

Mr.T.N.C.Koushik, representing Additional Government Pleader, accepted notice for the respondent. He submits that principles of natural justice were complied with by issuing show cause notice dated 29.09.2023 and the reminders for personal hearing.

On perusal of the impugned order, it is evident that the tax proposal pertains to a mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. The counsel for the petitioner submitted that the mismatch was reconciled while filing the reconciliation statement. By taking the above contention into account as also the fact that the petitioner was not heard before the tax proposal was confirmed, the interest of justice warrants that an opportunity be provided to the petitioner albeit by putting the petitioner on terms.

The single bench comprising Justice Senthil Kumar Ramamoorthi observed that the impugned order dated 30.12.2023 was set aside on condition that the petitioner remits 10% of the disputed tax demand within two weeks from the date of receipt of a copy of this order. Within the said period, the petitioner is permitted to reply to the show cause notice. On receipt thereof and on being satisfied that the 10% of the disputed tax demand was received, the respondent is 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 the petitioner's reply. On account of the assessment order being set aside, the attachment is raised.

Therefore, the writ petition was disposed of.

To Read the full text of the Order CLICK HERE

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