2025 (7) TMI 200 - HC - GST

Confirmation of entire original tax demand without taking into aspect that the petitioner remitted 58% of the differential amount claimed by way of debit from electronic credit ledger - HELD THAT - On perusal of the impugned order it is clear that the entire tax proposal was confirmed and no credit was given in respect of 58% remitted by way of debiting the electronic credit ledger of the petitioner. Therefore the matter requires reconsideration. The impugned order dated 07.05.2024 is set aside and the matter is remanded for reconsideration of the first respondent. After providing reasonable opportunity to the petitioner the first respondent is directed to reconsider the matter including by taking into consideration the remittances made by the petitioner by way of debit from electronic credit ledger. Petition disposed off by way of remand.

Summary

The Madras High Court, through Justice Senthilkumar Ramamoorthy, set aside the impugned order dated 07.05.2024 which confirmed the entire tax demand arising from a mismatch between the petitioner's GSTR 1 and GSTR 3B returns without accounting for the petitioner's remittance of 58% of the differential amount via debit from the electronic credit ledger. The Court emphasized that "no credit was given in respect of 58% remitted," necessitating reconsideration. The matter was remanded to the first respondent for fresh consideration after affording the petitioner a reasonable opportunity, explicitly directing that the remittances made by debiting the electronic credit ledger be taken into account. The writ petition was disposed of without notice to the second respondent (impleaded as garnishee), the bank attachment consequent to the assessment order was lifted, and no costs were imposed.