Madras High Court Remands GST Liability Order for Reconsideration
The Madras High Court has remanded the order validating the GST liability for reconsideration due to the lack of oral or document proof. The case has been sent back for review with a requirement of a 10% pre-deposit.
Applicant’s Claim of Lack of Communication
The applicant/taxpayer, Jai Maa Engineering Co., has stated that they were not informed about the proceedings leading to the contested order as all communication was done only through the GST portal. They only became aware of the situation when their bank account was attached in late February 2024.
Argument Regarding GST Dispute
The applicant’s counsel argued that the GST dispute arose from discrepancies between their GSTR-3B returns and the auto-populated GSTR-2A. They believe that given the opportunity, they can demonstrate that there is no difference between their returns and GSTR-2A.
Conditions for Reconsideration
The applicant’s counsel expressed willingness to pay 10% of the disputed GST demand as a precondition for the reconsideration. Mr. A. Dhamodaran appeared on behalf of the taxpayer.
Government’s Response
The respondent’s counsel mentioned that an ASMT-10 notice was issued after scrutinizing the taxpayer’s returns. The government’s counsel, T.N.C. Kaushik, stated that a show cause notice was issued along with an invitation for a personal hearing.
Court’s Decision
The bench noted that the order was confirmed without the assessee being able to present any evidence, highlighting the lack of notification and opportunity for the taxpayer to contest the GST demand. Therefore, the disputed GST order was set aside.
Reconsideration Terms
The case has been remanded for reconsideration, with the taxpayer required to pay the 10% deposit of the disputed tax within 15 days of receiving the order. The taxpayer can also respond to the show cause notices within the same 15-day period, and the bank attachment has been lifted.
Hashtags: #MadrasHighCourt #GSTOrder #Taxation #LegalMatters