GST UPDATE

????Desk of CA. Praveen Sharma Series- 517????

 MADRAS HIGH COURT IN THE CASE OFJinvar Trading Company Section 73 of the CGST Act, 2017

Order Set Aside Due to Lack of Reasonable Opportunity to Contest Tax Demand

The petitioner challenged an original order dated 30.10.2023, arguing they were not given a fair opportunity to contest the tax demand. The petitioner was unaware of the proceedings because their part-time accountant failed to check the "View Additional Notices and Orders" tab on the GST portal. The tax demand arose from a discrepancy between the GSTR-3B return and the GSTR-1 statement, with GST mistakenly calculated at 36%.

The petitioner's counsel highlighted that Rs. 68,677/- had already been recovered from the petitioner's electronic credit ledger. The respondent's counsel argued that ample opportunity was provided to contest the tax demand.

The court noted the mismatch between the returns and the lack of response to the show cause notice. Given these circumstances, the court set aside the order dated 30.10.2023 and remanded the matter for reconsideration. The petitioner can submit a reply to the show cause notice within two weeks, and the respondent must provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months. The amount debited shall abide by the outcome of the remanded proceedings. The writ petition was disposed of without any order as to costs.

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CA. Praveen Sharma 

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