GST Demand raised on Difference of Tamil Nadu and All India Turnover: Madras HC sets aside Order on 10% Pre-Deposit

The Madras High Court set aside a GST demand order based on the difference between Tamil Nadu and all-India turnover, requiring a 10% pre-deposit. The petitioner argued that the demand was arbitrary and lacked a proper basis. The court found that the tax authorities had not provided sufficient evidence to justify the demand and had failed to consider the petitioner’s submissions. The ruling underscores the importance of a fair and transparent assessment process and the need for tax authorities to provide clear and substantiated reasons for their decisions. This decision provides relief to taxpayers facing similar demands and reinforces the principle of due process in tax assessments.