Tax Dispute Settled: Partial Order Modification, 10% Payment Required, Fresh Hearing Ordered Within 3 Months HC resolved tax dispute by partially setting aside original order. Petitioner required to pay 10% of disputed tax demand within 15 days. Respondent ...
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Tax Dispute Settled: Partial Order Modification, 10% Payment Required, Fresh Hearing Ordered Within 3 Months
HC resolved tax dispute by partially setting aside original order. Petitioner required to pay 10% of disputed tax demand within 15 days. Respondent directed to provide personal hearing and issue fresh order within 3 months. Writ petition disposed without costs, addressing GST return discrepancies and procedural compliance.
Issues: Challenge to order in original dated 29.12.2023, mismatch between taxable turnover in GSTR 9 and GSTR 3B, inadvertent error in reflecting credit notes, imposition of tax, interest for belated filing of returns, compliance with principles of natural justice.
In this case, the petitioner challenged an order dated 29.12.2023, which confirmed the highest tax proposal due to a mismatch between the taxable turnover reported in GSTR 9 and GSTR 3B. The petitioner argued that the disparity arose due to an inadvertent error in reflecting credit notes in the returns. The petitioner contended that the credit notes were properly reflected in the annual return in GSTR 9, explaining the mismatch. Additionally, the petitioner highlighted an error in the order where a lump sum tax amount was imposed instead of treating the differential amounts as taxable supply and imposing tax at the applicable rate. The petitioner also accepted liability for interest on belated filing of returns and agreed to pay it subject to any waiver recommended by the GST Council. The petitioner also agreed to remit 10% of the disputed tax demand for certain defects as a condition for remand.
The respondent, represented by the Additional Government Pleader, confirmed that the audit report was shared with the petitioner, and principles of natural justice were followed in considering the petitioner's reply. Upon examination, it was noted that certain defects in the impugned order were dropped based on the petitioner's submissions. The order partly set aside the original decision concerning specific defects, directing the petitioner to remit 10% of the disputed tax demand within 15 days for certain issues. Once the payment was made, the respondent was instructed to provide the petitioner with a reasonable opportunity, including a personal hearing, and issue a fresh order within three months.
Ultimately, the High Court disposed of the writ petition without costs, closing connected miscellaneous petitions. The judgment provided a detailed analysis of the issues raised, addressing the discrepancies in the tax assessment and outlining the steps for reconsideration and fresh order issuance based on the petitioner's compliance with the specified conditions.
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