GST Proceedings Unknown Until Garnishee Proceedings: Madras HC Orders Reconsideration 10% Pre-deposit [Read Order]

The Madras High Court ordered reconsideration of Rana Granites' GST matter under a 10% pre-deposit condition. The petitioner claimed ignorance of GST proceedings until garnishee proceedings commenced in March 2024, triggered by an unnoticed order uploaded only on the GST portal. \r

Alleging a mismatch between their GSTR-3B and auto-populated GSTR-2A, Rana Granites asserted rightful Input Tax Credit (ITC) usage, pledging to substantiate this if given a chance. The Assistant Commissioner (ST), represented by Mr. V. Prashanth Kiran, argued that ample opportunities were provided, citing a prior show cause notice unanswered by the petitioner. \r

Acknowledging the mismatch issue, the High Court set aside the earlier order and directed Rana Granites to deposit 10% of the disputed tax within two weeks of the order receipt. They must also submit a comprehensive reply and relevant documents within this period. \r

Following this, the Assistant Commissioner must allow a personal hearing and issue a fresh order within three months.