2025 (2) TMI 409 - HC - GST

Tax Assessment Order Overturned: Petitioner Must Deposit 25% of Disputed Taxes; Compliance Within Four Weeks Required

Jothi Virutchem Super Market Versus The Assistant Commissioner (ST), Villupuram I Assessment Circle, Puducherry Road, Villupuram

The HC set aside the impugned order related to the petitioner's tax assessment for 2019-20, directing the petitioner to deposit 25% of disputed taxes ... Challenged the Order passed that the petitioner had filed only reply, Not supported by materials or invoices - Defects found in monthly return - Issued show notice - Petitioner ready and willing to pay the disputed tax - HELD THAT:- Following the recent judgment delivered by this Court in the case of M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise [2024 (6) TMI 713 - MADRAS HIGH COURT]. Additionally, petitioner is ready and willing to pay 25% of the disputed tax and that he may be granted one final opportunity before the adjudicating authority to put forth their objections to the proposal, to which, the learned Government Pleader appearing for the respondent does not have any serious objection. Thus, the writ petition stands disposed of on the following terms. The impugned order is set aside. The present case involves a Writ Petition challenging an order passed by the respondent related to the assessment year 2019-20 concerning a business engaged in Groceries, Provisions, and General Goods registered under the Goods and Services Act, 2017. The petitioner had filed its return and paid taxes but faced scrutiny due to discrepancies in GSTR 3B and GSTR 2A, as well as the non-generation of E-way bills for inward supplies. The respondent issued notices and reminders, leading to the impugned order based on the petitioner's reply lacking supporting materials. The petitioner sought an opportunity to explain the discrepancies, citing a recent judgment for support.The Court disposed of the petition based on the following terms:a) Setting aside the impugned orderb) Directing the petitioner to deposit 25% of the disputed taxes within four weeksc) Allowing for adjustments if any amount has been paid, with the balance to be paid within specified timelinesd) Mandating completion of verification and compliance within four weekse) Warning of restoration of the impugned order in case of non-compliancef) Requiring lifting of any recovery measures upon complianceg) Treating the impugned order as a show cause notice upon compliance, with the petitioner to submit objections and supporting documents within four weeksThe Court made it clear that failure to comply with the payment condition or filing objections within the specified period would result in the restoration of the impugned order. No costs were awarded, and connected miscellaneous petitions were closed.