HC Quashed Order Confirming Tax Demand as Disparity Was Due to Wrong Reporting of CGST & SGST Instead of IGST

Case Details: Subh Sri Agencies v. Deputy State Tax Officer - [2024] 161 taxmann.com 487 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • P. Rajkumar for the Petitioner.
  • T.N.C. Kaushik, AGP (T) for the Respondent.

Facts of the Case

The petitioner received a show cause notice in respect of disparity between GSTR-1 and GSTR-3B returns. It submitted reply and explained disparity by pointing out that error occurred on account of reflecting amount wrongly towards CGST and SGST instead of IGST. However, in spite of assessee’s reply, the tax demand was confirmed. It filed writ petition against the demand order and contended that the demand was not justified.

High Court Held

The Honorable High Court noted that the disparity between GSTR-1 and GSTR-3B returns was on account of wrongly specifying higher amounts in GSTR-3B returns as regards output CGST and output SGST. This aspect was not duly taken note of while issuing impugned order.

Therefore, it was held that the impugned order was liable to be quashed. The Court also noted that the petitioner had approached Court belatedly and therefore, the matter was remanded subject to condition that the petitioner shall deposit 10% of tax demand.