A Goods and Services Tax ( GST ) assessment order has been set aside by the Madras High Court pertinent to the fiscal year 2020-2021, asking for a fresh hearing in matters engaging the discrepancies between GSTR-3B and GSTR-2A returns. The court marked that neither the answer furnished nor the tax filed emerged from the mismatch.
The applicant, M/s.Sugos Steel Traders, a registered dealer in iron, steel, and M.S. scraps under the CGST/TNGST Act, 2017, encountered scrutiny regarding the mismatches in returns. Even after filing returns and paying taxes, discrepancies occurred in scrutiny, prompting the issuance of a show cause notice (Form GST DRC-01) on February 7, 2024, through the GST portal.
Subsequent to that three reminder notices were being furnished however the applicant neither furnished a response nor filed the tax amount, directing to the issuance of the impugned assessment order on May 16, 2024.
The applicant in a hearing asked for a chance to address the discrepancies and quoted a precedent set in M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise. The petitioner said willingness to deposit 25% of the disputed tax to ensure a rehearing.
No objections have been raised by the Government Advocate of the respondent, to this proposal.
The bench of Justice Mohammed Shaffiq asked the applicant to deposit 25% of the disputed tax in 2 weeks. On the pre-deposit compliance, the impugned order shall serve a Show Cause Notice (SCN) permitting the applicant 4 weeks to provide the objections with the supporting documents. The adjudicating authority was asked to pass a new order post furnishing a reasonable chance for a hearing.
If the applicant is unable to satisfy the said due dates for the deposit or filing the objections then the original assessment order shall be restored. The HC then disposed of the writ petition. Mr.Manoharan S. Sundaram appeared for the petitioner and Mr. V. Prashanth Kiran, Government Advocate appeared for the respondents.
| Case Title | M/s.Sugos Steel Traders vs.The Assistant Commissioner (ST)(FAC) |
| Citation | W.P. No.34470 of 2024 |
| Date | 27.11.2024 |
| Counsel For Petitioner | Mr.Manoharan S Sundaram |
| Counsel For Respondent | Mr.V.Prashanth Kiran |
| Madras High court | Read Order |
