The Madras High Court in a ruling permitted it to challenge the order on a 10% pre-deposit condition as agreed by the applicant for the case of misplacement of Input Tax Credit ( ITC ) in GSTR-3B. The court also marked the petitioner’s submission that he was not able to respond to notices as uploaded in the Additional Notices Tab.
For quashing the Order in Form GST DRC-07, a writ petition has been filed along with the detailed order issued via the first respondent – The Deputy State Tax Officer-. The petitioner asked for a directive for the first respondent to provide a chance to respond to the SCN on September 22, 2023, in Form GST DRC-01.
The applicant, Panjatcharam Kumaravel engaged in the business of procuring and distributing “Rich & Roy” sweets and snacks through M/s. Dhanalakshmi Agencies holds a registered GSTIN under the Tamil Nadu Goods and Services Tax Act, 2017.
The applicant on March 4, 2024, received a letter on February 29, 2024, via the second respondent, asking for the non-payment of GST arrears according to an assessment order. As per the verification through the GST Portal, with the assistance of his GST compliance consultant, No demand or pending proceedings have been traced for the applicant.
The applicant subsequently sees that notices and orders had been issued and uploaded via the first respondent on the GST Portal under the “View Additional Notices and Orders” tab.
It included a notice of discrepancies in returns filed in Form GST ASMT-10 dated August 30, 2023.
Intimation of tax payable under Section 73(5) dated September 15, 2023, in Form GST DRC-01A.
Show Cause Notice dated September 22, 2023, in Form GST DRC-01.
Reminder-1 Notice dated November 2, 2023.
Personal Hearing Notice dated November 2, 2023.
Order under Section 73 dated November 21, 2023 (the impugned order).
The petitioner received a letter on March 7, 2024, from the third respondent Bank, marking a lien on his current account due to an attachment order from the Commercial Tax Department.
The applicant argued that unintentional errors were incurred during the filing of the GSTR-3B returns for the year 2017-18, where the ITC on inward supplies was incorrectly reported under the column for ITC on “Inward supplies liable to reverse charge.”
The applicant, all supplies were procured from Rich Roy Sweets and Snacks and were not within to reverse charge. Ms K. Vasanthamala, Government Advocate (Tax), submitted that the petitioner had been duly notified, with the intimation issued on September 15, 2023, and the Show Cause Notice (SCN) on September 22, 2023.
The applicant being a registered person under the GST Regime, his appeal for not having accessed the Portal for a long period cannot be accepted as a valid reason and she would propose that the applicant be directed to claim for the statutory remedy.
The bench of Justice R. Kalaimathi on examining the proceedings, remarked that all pertinent notices and orders were indeed issued and uploaded as stated. The redesigned dashboard of the GST Portal now establishes different types of notices and orders.
Provided the petitioner’s reasons, the court selected to allow the petitioner to present his case. On the condition that the petitioner pays 10% of the disputed tax demand for the assessment year 2017-18 within four weeks from the order’s receipt the impugned order was quashed.
The Assessing Officer was recommended to reassess after furnishing a reasonable chance to the applicant and to issue a fresh assessment order within 6 weeks from the order receipt.
On these facts, the writ petition is disposed of, and therefore, connected writ miscellaneous petitions are closed.
| Case Title | Mr.Panjatcharam Kumaravel Vs. The Deputy State Tax Officer |
| Case No.: | W.P.No.13213 of 2024 and W.M.P.Nos.14359, 14360 & 14362 of 2024 |
| Date | 09.05.2024 |
| For Petitioner: | Mr.Bharath R. Srinivas |
| For Respondent: | Ms.K.Vasanthamala |
| Madras High Court | Read Order |