Tax Liability Confirmed on GSTR 3B and GSTR 2A Mismatch due to Non-Reply to SCN: Madras HC sets aside Order on Pre-deposit condition

The Madras High Court overturned a GST assessment order due to a 10% pre-deposit requirement. The petitioner, Quantum Associates, claimed ignorance of the proceedings as notices were only uploaded on the GST portal, not communicated directly. The case concerned a mismatch between GSTR 3B returns and GSTR 2A. \r

The petitioner offered to deposit 10% of the disputed tax demand for remand. The government advocate argued the petitioner was informed of the proceedings. Justice Senthilkumar Ramamoorthy granted the petitioner a chance to contest the tax demand, provided they remit 10% within two weeks and respond to the show cause notice. \r

The respondent was directed to issue a fresh order within three months after considering the petitioner's reply. Bank attachment was lifted, and M/s. M. Narasimha Bharathi represented the petitioner.