GST input tax credit mismatch dispute remitted for fresh adjudication, with conditional pre-deposit and additional reply required.

A GST assessment based on alleged excess input tax credit from mismatch between GSTR-2A and GSTR-2B, followed by rejection of the statutory appeal on limitation, was remitted for fresh consideration on merits. Although the taxpayer's explanation was found inconsistent and inadequate, the Court adopted its approach in similar matters and granted conditional relief by directing an additional pre-deposit of 40% of the disputed tax over and above the 10% already paid. The taxpayer was also required to file a detailed additional reply with supporting documents, with amounts already recovered or paid permitted to be adjusted towards the pre-deposit and bank attachment to be lifted on compliance.

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Issues: Whether the impugned assessment order and appeal rejection order warranted interference and whether the matter should be remitted for fresh consideration subject to deposit and further reply.

Analysis: The writ petition arose from a GST assessment based on alleged excess input tax credit claimed on account of mismatch between GSTR-2A and GSTR-2B, followed by rejection of the statutory appeal on limitation. The explanation offered by the petitioner was found to be inconsistent and inadequate, but the Court, following its consistent approach in similar matters, considered it appropriate to grant an for fresh adjudication on merits. The Court therefore directed remand to the assessing authority, requiring the petitioner to make an additional pre-deposit of 40% of the disputed tax over and above the 10% already deposited, to file a detailed additional reply with supporting documents, and permitting adjustment of sums already recovered or paid towards the required pre-deposit.

Conclusion: The matter was remitted for fresh consideration on merits, with conditional relief to the petitioner and corresponding directions regarding pre-deposit, further reply, and lifting of bank attachment upon compliance.

Ratio Decidendi: Where the explanation to a GST show-cause notice is found inadequate but the dispute can still be examined on merits, the Court may remit the matter for fresh adjudication while balancing relief by imposing a quantified pre-deposit and directing filing of a further reply and documents.

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