Madras HC Permits Last Opportunity to Explain Mismatch B/W GST Returns Forms 3B and 9C

The Madras High Court in a mismatch between the GST Returns 3B and the GSTR 9C, has granted a last chance to explain the discrepancies to the petitioner on 25% pre-deposit of the disputed tax.

The applicant R.Ramesh is a contractor for distinct Tamil Nadu Government departments and registered under the GST act, submitted returns, and filed taxes for the related period. But at the time of the scrutiny, the below-mentioned were discovered-

• Mismatches between GSTR-3B and GSTR-9C
• Suppression of outward supply
• Unpaid taxes on rental receipts were identified

GSTR-9C is a reconciliation statement that the registered taxpayers under the GST should file yearly. It reconciles the data submitted in the GSTR-9 (Annual return) with the audited taxpayers’ financial statements.

Even after receiving a Form GST ASMT-10 intimation dated April 3, 2024, followed via a Show cause notice (GST DRC-01) on May 6, 2024, and being proposed a personal hearing dated June 6, 2024, the applicant neither answered nor appeared. Therefore the tax authorities validated the offered assessment in an impugned order on June 28, 2024.

It was claimed by the applicant that the notices and the order were not provided personally or through the registered after however were uploaded on the GST portal which they can not access. The same they claimed, obstructs their capability to take part in the proceedings.

To clarify the discrepancies the applicant asked for an opportunity to mention a decision in the case of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 from the Court, it asked the hearing on pre-deposit and indeed asked the lifting of a bank account attachment levied at the time of recovery proceedings.

The impugned order has been set aside by Justice Mohammad Shaffiq asking the applicant to deposit 25% of the disputed tax within 4 weeks.

The court ordered it to be regarded as a Show cause notice and the applicant will have additional 4 weeks to file the objections with the related documents. The GST was asked to analyze the objections and issue a fresh order post-hearing.

Also, the court asked for the quick lifting of the bank attachment on compliance with the pre-deposit condition. However, it was cited that the non-compliance of the directions within the said time will consequence in the restoration of the original assessment order.