Tag: Purchase Invoice is available

Assessee awaiting particulars from supplier, needs to be given time to explain difference in GSTR-3B Vs. 2B

In the case of:

Tvl. Lakshmi Tex Vs. Deputy State Tax Officer-1

W.P. No. 7005 of 2024

[2024] 160taxmann.com627 (Madras)

  1.  The petitioner is a dealer of woven fabrics in cotton and readymade garments. He states that he could not submit reply to the SCN (with regard to with regard to disparity between the GSTR-3B and GSTR-2B returns) issued pursuant to scrutiny of the returns, as he was awaiting particulars from his supplier.
  2.  The petitioner had enclosed the relevant purchase invoice to establish that there was no discrepancy and that consequently no tax liability is imposable. He also agrees to remit the pre-deposit of 10% of disputed tax.
  3. The petitioner submitted appeal on the ground that reasonable opportunity was not provided to contest the tax demand.

It was observed by the Hon’ble High Court of Madras that:

  1. On examining the show cause notice and impugned order, it is clear that the entire tax liability is with regard to disparity between the GSTR-3B and GSTR-2B returns. The petitioner has, subsequent to the issuance of such order, explained that ITC was validly availed of by submitting documents in support thereof.
  2. Undoubtedly, the petitioner was negligent in not doing so upon receipt of SCN.
  3. Nonetheless, if the explanation of the petitioner is valid, the interest of justice would be prejudiced unless the petitioner is provided an opportunity to explain the alleged disparity.
  4. For the reasons set out above, the impugned order is quashed subject to the condition that the petitioner remits the pre-deposit of 10% of disputed tax within 2 weeks.