HC Sets Aside GST Demand on TDS Mismatch, Allows Fresh Adjudication Based on NHAI Certificate
The petitioner, Tvl K M Constructions, challenged a GST demand order passed for AY 2021–22, which arose due to an alleged TDS mismatch. The demand initiated from a show cause notice issued earlier, to which the petitioner had responded, in which he denied any supply made to the National Highways Authority during the relevant period.
The petitioner contended that the TDS entries reflected in GSTR-7 were incorrectly reported by the National Highways Authority of India. Therefore, a clarification dated 10.02.2026 was issued by NHAI supporting the petitioner’s stand that no such transaction had taken place.
Issue Before HC: Whether a GST demand order based on TDS mismatch can be sustained when a subsequent clarification from the deductor establishes that no underlying supply existed
HC’s Ruling: The High Court set aside the challenged order and remanded the matter back to the assessing officer for fresh adjudication. It held that the certificate issued by NHAI, although obtained after the order, was a relevant piece of evidence that required proper verification.
The Court directed the authority to examine the authenticity of the certificate through internal channels and pass a fresh order on merits after granting the petitioner an opportunity of hearing.
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