GST mismatch dispute remanded for fresh adjudication, with demand order quashed and 10% deposit required.

Discrepancies between GSTR-01 and GSTR-3B were raised in relation to the demand, but the assessee contended that the shortfall had already been discharged through GSTR-09 and sought another hearing. The Madras HC quashed the impugned demand order and remanded the matter for fresh adjudication on merits and in accordance with law, treating the quashed order as an addendum to the show cause notice. The remand was made conditional on the assessee depositing 10% of the disputed tax within the stipulated time.

---

---

Issues: Whether the impugned demand order was liable to be set aside and the matter remitted for fresh consideration, with a direction to deposit 10% of the disputed tax.

Analysis: The petitioner pointed out that there were discrepancies between the GSTR-01 and GSTR-3B returns, but asserted that the deficit tax had already been paid in GSTR-09. The petitioner also sought one more opportunity of hearing and expressed willingness to deposit an additional 10% of the disputed tax as security. Recording these submissions, the impugned order was quashed and the matter was sent back for fresh decision, with the petitioner required to deposit 10% of the disputed tax within the stipulated period. The quashed order was also directed to be treated as an addendum to the show cause notice, and the respondent was directed to decide the matter on merits and in accordance with law.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication, subject to deposit of 10% of the disputed tax.

---