Matter to Be Remanded for Reconsideration After Giving Assessee Another Opportunity to Explain Mismatch in GST Returns | HC

Case Details: Arupadai Infrastructure v. Deputy State Tax Officer - [2024] 162 taxmann.com 717 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Ms S.P. Sri Harini for the Petitioner.
• V. Prashanth Kiran, GA (T) for the Respondent.

Facts of the Case

The petitioner was engaged in construction business. The department issued an assessment order on the ground that there was difference between the petitioner’s GSTR-3B return and the GSTR-1 statement. It filed writ petition against the assessment order and contended that RCM liability mismatch in GST returns occurred due to inadvertent error in filing GSTR-3B and it did not have a reasonable opportunity to contest the tax demand on merits.

High Court Held

The Honorable High Court noted that the impugned order was preceded by an intimation, a show cause notice and personal hearing notices. However, the petitioner placed on record the relevant GSTR 3B returns to substantiate the contention that the tax proposal was the result of an inadvertent error and the tax dues were demanded on the ground that there was a mismatch on account of an inadvertent error committed while filing GSTR 3B returns during the relevant assessment period.

Therefore, the Court held that the petitioner would be provided an opportunity to contest the demand and directed to submit a reply to the show cause notice within fifteen days from the date of receipt of a copy of this order.