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High Court Sets Aside Assessment Order on GST Discrepancy





Court: HIGH COURT OF MADRAS

Parties: K.C. Mathaiyan v. Assistant C Ssioner

Citation: W.P. NO. 8849 OF 2024 W.M.P. NOS. 9845 AND 9846 OF 2024


Facts:

(ST)

The petitioner, a works contractor for government departments, faced

an SCN regarding a discrepancy between GSTR 1 and GSTR 3B returns.

Before the assessment order was issued, the petitioner remitted

Rs.3,00,000 towards tax liability, attributing the delay in reconciliation to

delayed payments from government departments.

The petitioner challenged

imposition of a 100%

assessment order, contesting the

on tax dues.


Decision:

assessment order, contesting the

on tax dues.

The Court set aside the assessment order due to the petitioner not

being heard before its issuance, emphasizing the importance of natural

justice.

The petitioner was directed to remit an additional Rs.3,00,000 within

three weeks, totaling 20% of the tax dues, as a condition for setting

aside the order.

Petitioner was granted the opportunity to submit reply to the SCN within

the specified period, and upon compliance, the respondent was

instructed to provide a reasonable opportunity for a personal hearing

before issuing a fresh order.

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