Stay updated
The Hon’ble Madras High Court in the case of Manu Blue Metals and M. Sand disposed of the writ petition in case where the rectification application filed was not being decided upon within the prescribed period of six months for rectification of order as per Section 161 of the Central Goods and Services Tax Act (“the CGST Act”).
Erroneous entry of ITC in GSTR-3B return, Assessee allowed to file rectification petition for consideration by tax authorities after giving opportunity of hearing.
The Hon’ble Kerala High Court in the case of Winter Wood Designers & Contractors India (P.) Ltd held that non-invocation of powers of rectification was not proper, where there was duplication of orders based on two proceedings initiated alleging same irregularities, there was an error apparent on record. Therefore, authority ought to have invoked powers of rectification under Section 161 of the CGST Act, as error was brought to its notice within statutory period.
Synopsis: Non-compliance with appellate orders could lead to administrative chaos and erode public confidence in the appeal system.
Synopsis: Under Section 161 of the CGST Act, 2017, if rectification adversely affects any person, the affected party is required to be provided an opportunity of hearing.
Since the original order adversely affected the petitioner, thus, the third proviso to Section 161 came into picture, and the petitioner should have been given a hearing.
The Hon’ble Madras High Court in M/s. Vadivel Pyro Works v. The State Tax Officer set aside demand raised by the Revenue Department on the ground that rectification order under section 161 of the CGST Act was passed without giving opportunity of being heard to the assessee.