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2024 (4) TMI 733 - HC - GSTLevy of tax - non-banking financial services - sundry creditors - income received - tax proposal was confirmed in view of the failure of the petitioner to submit that the trial balance pertaining to its operations in Tamil Nadu. - GSTR-9C reconciliation statement. Sundry Creditors - HELD THAT:- Given that the issue relating to sundry creditors pertains to alleged non-payment by the petitioner for supplies received, the imposition of tax liability on the total value of trade receivables flies in the face of reason. Even assuming that dues to sundry creditors were not discharged, only the trade payables and not receivables should have been taken into account. Therefore, the impugned order is unsustainable as regards this issue. Income received - HELD THAT:- The total income was taken from the financial statement and tax appears to have been imposed on such turnover at 36%. In relation to this issue, the petitioner has placed on record the reconciliation statement in GSTR-9C to contend that the annual turnover under the relevant registration was only Rs. 8,82,352/-. Once again, the impugned order confirms the tax demand solely on the ground that the trial balance for Tamil Nadu was not provided. The impugned order dated 31.12.2023 is set aside insofar as it pertains to the issues relating to sundry creditors and income received. As a corollary, these two issues are remanded for reconsideration by the 5th respondent. After providing a reasonable opportunity to the petitioner, including a personal hearing, the 5th respondent is directed to pass a fresh order within two months from the date of receipt of a copy of this order. Petition disposed off by way of remand.
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