Tax Liability confirmed on GSTR 3B and 2A Mismatch: Madras HC grants Hearing Opportunity on 10% Pre-deposit\r\n\r\n

The Madras High Court has provided a taxpayer with a chance to contest a tax demand, contingent on a 10% pre-deposit, following a mismatch between GSTR 3B and GSTR 2A filings. The taxpayer, represented by Mr. S. Ramanan, argued that they were unaware of the proceedings as communications were only uploaded on the GST portal. Agreeing to pay 10% of the disputed tax, they sought another opportunity to contest the demand. Mr. C. Harsha Raj, for the respondents, stated that natural justice was followed with a show cause notice and personal hearing offer. Justice Senthil Kumar Ramamoorthy, finding the taxpayer's unawareness a valid concern, set aside the original order and remanded the case, subject to the 10% pre-deposit within 15 days. \r

The taxpayer can now reply to the show cause notice, and the respondents must provide a personal hearing and issue a fresh order within three months. With the assessment order set aside, a bank attachment was lifted, and the writ petition was disposed of, closing related miscellaneous petitions.