HC Set Aside Order Raising Demand Since Differential Tax Was Already Paid by Assessee While Filing Return in Form GSTR 3B

Case Details: P R Earth & Contracts v. State Tax Officer [2024] 164 taxmann.com 249 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Ms Aparna Nandakumar for the Petitioner.
• T.N.C. Kaushik, Additional Government Pleader (Tax) for the Respondent.

Facts of the Case

The assessee was engaged in the civil construction work. It was contended that GST was originally payable in respect of civil contracts at rate of 12% and such rate was subsequently increased to 18% with effect from 13.07.2022. It was submitted that after initially raising an invoice with GST at 12%, a revised invoice was issued by adding GST at 18%.The department issued notice and demand was raised on differential tax.

The assessee submitted reply after issuance of impugned order as it was unaware of proceedings prior thereto and contended that differential tax was paid while filing return in Form GSTR-3B. However, the demand was confirmed and it filed writ petition against the demand order.

High Court Held

The Honorable High Court noted that the differential tax was paid by the assessee while filing return in Form GSTR-3B. The Court further noted that the assessee had submitted reply after issuance of impugned order as it was unaware of proceedings prior thereto. Therefore, it was held that the matter was to be verified by Assessing Officer and impugned order raising demand was to be set aside on condition that assessee would remit 10% of disputed tax demand.