Matter Remanded as AO Confirmed Tax Proposal Without Considering Assessee’s Explanation on Higher ITC Reported in GSTR-3B

Case Details: GRK Plastic v. Assistant Commissioner (ST)(FAC) - [2024] 165 taxmann.com 687 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• L. Gokulraj & Hari Radhakrishnan for the Petitioner.
• C. Harsha Raj, AGP (T) for the Respondent.

Facts of the Case

In the present case, the petitioner had inadvertently reported higher ITC in GSTR-3B and rectified it by adding excess amount to outward supplies in the following month. However, the department issued assessment order confirming tax proposal without considering explanation of the petitioner. It filed writ petition against the assessment order.

High Court Held

The Honorable High Court observed that the petitioner should be provided opportunity to explain discrepancy and submit supporting documents. The Court noted that the petitioner’s GSTR 3B returns for the month of October and November 2017-18, it appears prima facie that an inadvertent error was committed and that such error was rectified, albeit irregularly. Therefore, the Court set aside the assessment order and matter was remanded for reconsideration.