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✨ Important Judgment of Madras High Court
Due to a discrepancy in GST returns, an error was identified and corrected.
Error occurred on account of reflecting the amount wrongly towards CGST and SGST instead of IGST.
The demand confirmation order was annulled and the case was remanded under certain conditions.
Facts of the Case🔍:
The petitioner received a show cause notice on 26.12.2022 for a discrepancy between their GSTR 1 and GSTR 3B returns.
The petitioner responded on 17.03.2023, explaining the disparity was due to an error in reflecting amounts towards CGST and SGST instead of IGST. Despite this, the impugned order was issued on 09.06.2023.
Issue🎯:
The issue was whether the petitioner's explanation for the discrepancy in their tax returns was valid and if the impugned order was justified.
Petitioner's Argument📝:
The petitioner argued that the disparity in their GSTR returns was a result of an error in reflecting amounts for CGST and SGST instead of IGST, which, if added and compared, would explain the discrepancy.
Respondent's Argument📚:
The respondent highlighted that the impugned order was issued within the stipulated time and that the petitioner approached the court belatedly. Thus, they believed no interference was warranted.
Court Judgment⚖️:
The High Court of Madras quashed the impugned order, subject to the petitioner remitting 10% of the disputed tax demand. It directed the respondent to provide a reasonable opportunity to the petitioner, including a personal hearing, before issuing a fresh order.
Title: Subh Sri Agencies vs Deputy State Tax Officer
Court: Madras High Court
Citation: W.P. NO. 8451 OF 2024
Dated: 27-Mar-2024
Impact Analysis🌟:
This judgment highlights the importance of providing a reasonable explanation for discrepancies in tax returns and the judiciary's role in ensuring fairness in the tax assessment process.